Vontobel Holding Ag · SIX:VONN
Vontobel — FY2020 Earnings Presentation
31 slides from Vontobel's earnings presentation, Feb 11, 2021
Slide 1: Vontobel full-year 2020 results
Public Vontobel full-year 2020 results Zeno Staub Thomas Heinzl CEO CFO February 11, 2021
Slide 2: Cautionary statement regarding forward-looking statements and disclaimer
Public Cautionary statement regarding forward-looking statements and disclaimer February 11, 2021 This document may contain projections or other forward-looking statements related to Vontobel that are subject to known and unknown risks, uncertainties and other important factors. These projections an
Slide 3: Key messages
Public Key messages February 11, 2021 Client trust in Vontobel has increased even further in the current challenging environment, reflecting our strong long-term investment performance, an outstanding client experience, and our strict focus on being on the clients’ side Record net inflow of new
Slide 4: Overview
Public Overview February 11, 2021 Highlights and strategic progress Financial results for the full year 2020 Outlook Q&A
Slide 5: Strong inflows of new money drive advised client assets to a record high
Public Strong inflows of new money drive advised client assets to a record high – good operating performance reflected in underlying growth in pre-tax profit February 11, 2021 Key figures as of December 31, 2020 Advised client assets Net new money CHF 248.2 bn of which CHF 219.6 bn CHF 14.8 bn (7.4%
Slide 6: Moving from a position of strength to the next level
Public Moving from a position of strength to the next level February 11, 2021 Focus on the long-term Transform into pure-play buy-side investment firm Client-centric Investment Saving is dead but -led Challenges for investors general public is holding too much cash Off-the-shelf passive investing is
Slide 7: The next wave of growth and critical milestones towards our Lighthouse
Public The next wave of growth and critical milestones as we work towards our Lighthouse February 11, 2021 Key achievements 2020 1 Deliver the Vontobel experience Implemented efficient digital onboarding process for private clients Business magazine ‘Euro’ assigned Bank Vontobel Europe AG the ra
Slide 8: Proven and distinctive investment capabilities anchored in our multi-boutique set-up
Public Proven and distinctive investment capabilities anchored in our multi-boutique set-up February 11, 2021 Advised client assets by asset class AuM by ESG investments according to SFDR3 (end of 2020, totaling CHF 248.2 bn) classification (end of 2020, totaling CHF 219.6 bn) Structured 1 +10% Prod
Slide 9: Strong inflows on an absolute and relative base and good performance through the cycle
Public Strong inflows on an absolute and relative base and good performance through the cycle February 11, 2021 Cumulative flows in active funds1 (CHF bn) Track record in funds (% of 4* & 5* ratings, % of 1st and 2nd quartiles2) 700 10 92 93 88 81 82 600 70 8 500 59 54 54 49 400 6 38 300 4 200 9 2 1
Slide 10: Navigating the endless bull market and the sharpest V-shape in history
Public Navigating the seemingly endless bull market and the sharpest peak-to-through- and-back V-shape in history is challenging for high-conviction active managers February 11, 2021 Equity Multi Asset Fixed Income – Quality style has to battle hard in – Strong results for 3 Alpha approach in – V-sh
Slide 11: Fixed income is less commoditized – active management is the key to success
Public Fixed income is less commoditized as spreads became more important – active management is the key to success February 11, 2021 The current bond environment Development of yield Active fixed income management composition over time is the key to success! 28.0% You need active fixed income Gov
Slide 12: Technology allows us to scale products for self-guided investors globally
Public Technology allows us to scale products for self-guided investors globally February 11, 2021 Innovative and scalable technology Growth in market share across all markets MARKET SHARE RANK 2020 2019 We are building a platform that allows us to store and process data for analytics purposes in or
Slide 13: Financial results for the full year 2020
Public Overview February 11, 2021 Highlights and strategic progress Financial results for the full year 2020 Outlook Q&A
Slide 14: Record advised client assets of CHF 248.2 billion driven by strong NNM and performance
Public Record advised client assets of CHF 248.2 billion driven by strong NNM and performance February 11, 2021 Advised client assets (ACA) Advised client assets (ACA) development (CHF bn, end of period) (CHF bn) 248.2 9.8% 2.0 1.4 248.2 12% p.a. 14.8 - 7.1 11.1 226.1 8.2 20.4 226.1 186.6 192.5 155.
Slide 15: Positive contribution from all Client Units and asset classes
Public Positive contribution from all Client Units and asset classes February 11, 2021 Assets under Management1 Net new money (CHF bn) (CHF bn) by Client Unit by asset class by Client Unit by asset class 6.9% 7.4% 6.9% 7.4% +10% +10% 220 220 14.8 14.8 199 199 51 11.7 2.2 11.7 45 3.1 135 48 9.5 121 4
Slide 16: Stable operating income and reduced costs leading to increased pre-tax profit
Public Stable operating income and reduced costs leading to increased pre-tax profit February 11, 2021 Key figures Comments (CHF mn) FY 2020 FY 2019 ∆ ∆ CC Group net profit declined by 2% to CHF 259.4 million Operating income 1,265.5 1,261.9 +0% +3% excl. one-offs1 1,265.5 1,255.0 +1% +4% Pre-ta
Slide 17: Operating income development affected by FX and one-offs
Public Operating income development affected by FX and one-offs February 11, 2021 Operating income by category Operating income by client units Comments (CHF mn) (CHF mn) Operating income flat 1,262 1,266 1,262 1,266 Adjusted for one-off effects in 2019, 79 73 discontinued business and currency
Slide 18: Stable recurring commission income in Wealth Management and P&S
Public Stable recurring commission income in Wealth Management and P&S Asset Management margin impacted by shifts in asset mix during the year February 11, 2021 Asset Management RoA Platforms & Services – EAM RoA1 Wealth Management RoA1 (bps) (bps) (bps) 74 73 11 10 50 50 12 12 9 6 45 42 1 0 21 24 P
Slide 19: Pre-tax profit increased by 14% if adjusted for FX and one-off effects
Public Pre-tax profit increased by 14% if adjusted for FX and one-off effects February 11, 2021 Pre-tax profit Comments (CHF mn) +14% 43.6 355.2 28.7 Pre-tax profit increased 5.5 by 5% 11.8 - 6.9 311.6 321.0 306.7 Cost/income ratio improved to 74.1% Underlying pre-tax profit increased by 14%
Slide 20: Strong and resilient balance sheet and capital ratios
Public Strong and resilient balance sheet and capital ratios February 11, 2021 Capital ratios Balance sheet and capital (CHF mn, percent) Continued strong equity capital generation 1,473 19.8% CET1 capital increased by 7.9% to CHF 1,024 million 449 AT1 6.0% Risk-weighted assets (RWA) increased
Slide 21: Strong value creation
Public Strong value creation February 11, 2021 Taking a longer-term view in our investments and in our dividend policy to ensure attractive payouts 13.1% 14.2% 13.0% 13.3% 12.4% 11.7%1 11.0% 2.25 2.253 9.7% 2.10 2.10 9.2% 8.7% 2.00 8.3% 1.85 8.0% 8-9% 7.5% 7.6% 7.2% 7.4% 1.55 8.4% 8.4% 8.8% 1.30 1.2
Slide 22: Summary of business KPIs
Public Summary of business KPIs February 11, 2021 2020 2019 Targets Net new money growth 7.4% 6.9% 4% – 6% Top line growth 0.3% 9.0% 4% – 6% Pre-tax profit growth 4.7% 11.0% – Net profit growth – 2.2% 14.2% – Cost/income ratio 74.1% 75.6% < 72% Return on equity 13.3% 14.2% > 14% CET1 ratio 13.8% 13.
Slide 23: Outlook
Public Overview February 11, 2021 Highlights and strategic progress Financial results for the full year 2020 Outlook Q&A
Slide 24: Industry challenges trigger rethink of business models
Public Industry challenges trigger rethink of business models Vontobel is ready to seize new opportunities February 11, 2021 Market trends Client access Vontobel – on the right path World is becoming more Fear of disruption to distribution Focus on creating value and growing heterogeneous, ins
Slide 25: Fundamental growth drivers are intact – now more than ever
Public Fundamental growth drivers are intact – now more than ever February 11, 2021 Strong asset base Investment-led and technology- Committed to building on strong enabled in markets flooded foundations to transform change with money into opportunities AuM (in CHF billion) – Growing demand for prof
Slide 26: Appendix
Public Appendix 26
Slide 27: Current business mix is resilient and geographically well diversified
Public Current business mix is resilient and also geographically well diversified February 11, 2021 Assets under management by Assets under management by client domicile (end-2020) mandate type (end-2020) Execution / Other custody Collective investments / APAC / EM 8% 12% funds 12% Advisory 28% Swit
Slide 28: Costs are managed effectively in new set-up
Public Costs are managed effectively in new set-up February 11, 2021 Operating expense by category Operating expense by CU/CoE Comments (CHF mn) (CHF mn) Operating expense was down 1%, driven by lower direct expenses in Centers of Excellence 955 945 955 945 From a cost category perspective, lowe
Slide 29: High quality of bond portfolio maintained
Public High quality of bond portfolio maintained February 11, 2021 Counterparty exposure by rating Counterparty exposure by sector (end December 2020) (end December 2020) 4% 24% 16% 34% 39% 33% 50% Government / public sector bodies AAA A Other Financials AA BBB Corporate (non-financials) Note: Total
Slide 30: Swiss market is fragmented and undergoing structural change
Public Swiss market is fragmented and undergoing structural change – creating opportunities for Vontobel to accelerate growth February 11, 2021 Private banks in Switzerland Comments –39% -39% – Number of Swiss private banks has decreased by almost 40% since 163 158 2010 147 138 – Structural change i
Slide 31: Vontobel families hold more than 50% of share capital
Public Vontobel families hold more than 50% of share capital and are strongly committed to Vontobel February 11, 2021 Shareholder structure1 Vontobel Foundation and Pellegrinus Holding 19.6% Vontrust AG Free float 49.1% 14.3% Pooled shares total Shares in the core pooling 50.9% agreement 44.5% Advon