Slide 1: Vontobel Financial Results 2014
Vontobel Financial Results 2014 Zeno Staub, CEO Martin Sieg Castagnola, CFO 11 February 2015 Performance creates trust
Slide 2: Cautionary statement regarding forward-looking statements
Slide 2 Cautionary statement regarding forward-looking statements 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 and forward-looking statements ref
Slide 3: Overview
Slide 3 Overview Highlights Financial results 2014 Strategy update Outlook
Slide 4: Continued, profitable growth underpinned by record asset base and strong inflows
Slide 4 Vontobel’s continued, profitable growth is underpinned by a record asset base and strong inflow of new money Key figures Net new money Client assets +17% CHF 6.2 bn Strong inflows in 2H14 CHF 190.7 bn after balanced 1H14 Group net profit +10% Return on equity +1.1pp CHF 134.5 mn 8.7% CET1 ca
Slide 5: Commitment to excellence, talent and clear focus drive Vontobel forward
Slide 5 Commitment to excellence, talent and a clear focus drive Vontobel forward Client endorsements, strong organic growth and continued investment Clients continue to endorse our services and products − Strong net new money growth of 5.7% with significant inflows in second half (annualized growth
Slide 6: Overview: Strategy update
Slide 6 Overview Highlights Financial results 2014 Strategy update Outlook
Slide 7: Advised client assets growth of 93% since 2008
Slide 7 Advised client assets growth of 93% since 2008 – confirming Vontobel’s successful focus on its core capabilities Advised client assets (CHF bn) Vontobel’s business model Vontobel’s core capabilities are to protect and build wealth, to manage assets actively and to deliver tailor- +93% made i
Slide 8: Net new money growth of 11.4% annualized in 2H14
Slide 8 Impressive net new money growth of 11.4% on an annualized basis in 2H14 Net new money (CHF bn) Development of AuM (CHF bn) 2011 2012 2013 2014 1 1 1 1 10.4% 10.5% 9.2% 5.7% ∆ in % 8.6 9.1 31-12-13 109.6 0.9 1.2 8.2 1.0 0.4 1.4 Net new money 6.2 6 0.4 1.1 6.2 0.2 0.0 Performance 5.1 5 1.1 0.3
Slide 9: Around 40% of assets from Emerging Markets and the US
Slide 9 Around 40% of assets stem from the growth regions Emerging Markets and the US Advised client assets (CHF bn) Advised client assets by client domicile Others +17% UK 6% Italy 137 3% +11% 4% 7 Germany 117 7 Switzerland 6% 105 7 7 0 0 42% 19% Emerging 124 Markets 110 98 20% US 2012 2013 2014 As
Slide 10: Significant growth in advised client assets across all focus markets
Slide 10 Significant growth in advised client assets across all focus markets Switzerland (CHF bn) Emerging Markets (CHF bn) US (CHF bn) 57 26 28 52 46 +24% 23 19 +50% +51% 17 18 2012 2013 2014 2012 2013 2014 2012 2013 2014 Germany (CHF bn) Italy (CHF bn) UK (CHF bn) 9.0 9.0 6.0 4.5 7.9 +14% 4.7 +41
Slide 11: Strong position in Swiss home market and increasing share in Germany
Slide 11 Strong market position in Swiss home market and and increasing market share in Germany Switzerland CHF mn Rank, turnover #2 7,000 45% Market share, turnover 20.7% 6,000 40% Market share, # of trades 40.9% 5,000 35% 30% 4,000 25% Vontobel share by number of trades (rhs) 3,000 20% Vontobel ma
Slide 12: Operating income grew by 4%
Slide 12 Operating income grew by 4% – higher asset base led to increase in fee and commission income Development of operating income (CHF mn) Comments 71% of operating income from fee and commission income 884.4 ∆ to 2013 absolute % Fee and commission income up by 849.3 5.8 50.6 5%, driven by highe
Slide 13: Operating expense rose by 2%
Slide 13 Operating expense rose by 2% – driven by investments in talent Development of operating expense (CHF mn) Comments Higher personnel expense due to investments in talent, e.g. 695.9 711.6 ∆ to 2013 absolute % recruitment of senior relationship 9.4 61.9 1.7 managers and investment specialists
Slide 14: Higher net profit allows 19% increase in dividend
Slide 14 Higher group net profit and shareholder-oriented capital management allows for 19% increase in dividend Development of key figures Comments 31-12-13 31-12-14 ∆ Shareholder-oriented and active capital management demonstrated by Operating income (CHF mn) 849.3 884.4 +4% share buyback – net pr
Slide 15: Segment pre-tax profits
Slide 15 Private Banking and Asset Management confirming high level of profitability, Investment Banking back to growth Pre-tax segment profits (IFRS, CHF mn) Private Banking Asset Management Investment Banking Corporate Center +5% 108 103 +17% -11% -4% 66 -66 59 57 57 -59 2013 2014 2013 2014 2013 2
Slide 16: Share buyback and solid capital position with CET1 ratio of 21.3%
Slide 16 Shareholder oriented capital management confirmed by share buyback – capital position remains solid with CET1 ratio of 21.3% Development of capital (CHF mn) BIS CET1 capital and ratios (CHF mn) 25.5% 21.3% 1,626 1,348 -84 1,117 Target ratios 1,412 -270 ≥ 16% total capital 4 135 ≥ 12% CET1 c
Slide 17: Cancellation of 12.5% of own shares will increase free float
Slide 17 Cancellation of 12.5% of own shares will increase free float by 4.6pp – Raiffeisen revenues protected until mid-2017 Financial indicators1 Shareholder structure Comments Return on equity (ROE) Cancellation of 12.5% of own shares 33.0% will be proposed to the General 37.6% +1pp Meeting of Sh
Slide 18: Advised client assets at end-January above 2014 average
Slide 18 Advised client assets at end-January above 2014 average – Vontobel’s commitment to growth is unchanged Income and Advised client assets cost structure (2014) Comments +3% USD up by 0.5% (31-01-2015) compared to 2014 average 124.3 128.5 884,4 EUR down by -14.4% (31-01-2015) 7.1 5.9 8% compar
Slide 19: Overview: Outlook
Slide 19 Overview Highlights Financial results 2014 Strategy update Outlook
Slide 20: Vontobel is delivering on its strategy
Slide 20 Vontobel is delivering on its strategy Core capabilities Strategic priority: service and product excellence Vontobel’s core capabilities Service leader Named ‘Best Private Bank in Switzerland 2014’ by Swiss are business magazine BILANZ Rated ‘excellent’ in Germany by investor magazine €uro
Slide 21: Wealth management with private clients grew 20% since 2012
Slide 21 Wealth management activities with private clients grew by 20% since 2012 and advised client assets reached CHF 41 bn Vontobel’s wealth management activities with private clients Advised client assets (CHF bn) Operating income (CHF mn) Comments Advised client assets and operating 41.0 278 in
Slide 22: Private Banking growth via relationship managers and technology
Slide 22 Private Banking aims to achieve growth by recruiting relationship managers and investing in technology Leading advisory process and Recruitment of RMs to drive growth technology innovation +13% Accelerated recruitment of RMs In 2011, Private Banking introduced new in focus markets of Switze
Slide 23: Impressive growth in Asset Management since 2011
Slide 23 Impressive growth in Asset Management since 2011 … Growth of advised client assets (CHF bn) Strong NNM contribution (CHF bn, %) 88 6.9%1 15.4%1 17.7%1 12.5%1 69 5 61 8.2 7.7 NNM in 2H14 +86% 47 6.3 of CHF 5.6 bn, 83 4.6 representing an annualized growth rate of 16.1%1 2011 2012 2013 2014 20
Slide 24: Potential for future growth with diversified book of business
Slide 24 … with potential for future growth and supported by a diversified book of business Quality Growth: Leverage Fixed Income: Strong growth of Diversified global investor competencies for other strategies 20% in 2014 base with institutional focus 8% 10.7 4% 8.9 20% 29% 36% 62% 92% 13% 18% 38% S
Slide 25: Financial Products leverages technology leadership internationally
Slide 25 Financial Products leverages technology leadership by providing tailor-made solutions internationally Switzerland and Germany Asia Leading position in Swiss home market Recruiting of local sales force in 2014 Successful build-up of position Leverage products listed on Singapore Exchange (SG
Slide 26: Multi-issuer platform attracting increasing demand from distributors
Slide 26 Multi-issuer platform with impressive offering that is attracting increasing demand from distributors Value chain Offering Issuers Leading “full service” platform for structured products low cost market reach consisting of: 6 leading issuers representing 70% of volume traded in Deritrade® M
Slide 27: Overview: Outlook
Slide 27 Overview Highlights Financial results 2014 Strategy update Outlook
Slide 28: Outlook: Vontobel will continue on its growth path
Slide 28 Outlook: Vontobel will continue on its growth path Challenging Vontobel with environment to persist higher asset base … … and key initiatives Operating environment to remain Private Banking/External Asset +3% challenging – with low or even Managers: Pursue growth by 124.3 128.5 investing in
Slide 29: Vontobel confirms its targets for 2017
Slide 29 Vontobel confirms its targets for 2017 despite challenging environment and negative currency effects Return on equity (in %) Cost/income ratio (in %) > 10 80.8 80.3 < 75 8.7 7.6 2013 2014 Target 2013 2014 Target 2017 2017 Total capital ratio (in %) Payout ratio (in %) 25.5 68.3 64.52 21.3 >
Slide 30: The Vontobel Group
Slide 30 Private Banking Investment Banking Asset Management = LX) aa © = Z © = Performance creates trust
Slide 31: Appendix
Slide 31 = = O © = Z (2) > Appendix
Slide 32: Advised client assets: growth of 30% since 2012
Slide 32 Advised client assets: growth of 30% since 2012 and diversified across asset classes Advised client assets (CHF bn) Advised client assets by asset class (as of 31-12-14) Private & Investment Banking Asset Management +30% 2% 2% 3% 136.9 17% 20% 11% 116.6 13% 105.4 19% 21% 16% 22% 63% 25% 16%
Slide 33: 80% of advised client assets from Switzerland, US and Emerging Markets
Slide 33 80% of advised client assets stem from Switzerland, US and Emerging Markets Advised client assets by client domicile as of 31-12-14 (CHF bn) Home Markets Focus markets Other markets market Emerging Country Switzerland1 Germany Italy UK US Total Markets2 Total advised client 56.8 8.6 6.0 4.5
Slide 34: About one third of regulatory capital allocated to Investment Banking
Slide 34 About one third of regulatory required capital allocated to Investment Banking Allocation of regulatory capital as of 31 December 2014 (CHF mn) 177.4 512.6 35.7 93.6 126.3 117.6 105.8 103.1 0.0 67.0 137.3 3.7 49.2 201.3 64.0 32.9 45.3 27.0 35.4 100.1 26.4 11.3 -22.6 Credit Risk Private Asse
Slide 35: Conservative balance sheet ratios
Slide 35 Conservative balance sheet ratios – reflecting high level of client deposits and business with structured products Balance sheet as of 31 December 2014 (CHF bn) 18.5 18.5 0.5 Banks Cash at SNB, with first-class Liquidity and banks 5.6 counterparties and on a collateralized basis Clients con
Slide 36: High quality of bond portfolio maintained
Slide 36 High quality of bond portfolio maintained – about two third of exposure in AAA and AA counterparties Counterparty exposure by rating (as of 31-12-14) Counterparty exposure by sector (as of 31-12-14) 3% 2% 19% 24% 38% 32% 43% 39% AAA Government/public sector bodies AA Financials A Corporates
Slide 37: Valuation effects and development of spreads
Slide 37 Valuation effects and development of spreads 2008 2009 2010 2011 2012 2013 2014 1 HJ 2 HJ 1 HJ 2 HJ 1 HJ 2 HJ 1 HJ 2 HJ 1 HJ 2 HJ 1 HJ 2 HJ 1 HJ 2 HJ bp 400 300 194 200 102 111 112 100 70 59 34 38 20 12 17 10 10 12 6 2 0.2 0.1 7 7 1 0 -6 -2 -3 -11 -3 -9 -24 -6 -16 -14 -4 -29 -32 -28 -59 -65
Slide 38: External Asset Manager platform with consistent growth
Slide 38 External Asset Manager platform with consistent growth and increasing profit contribution due to operating leverage Advised client assets (CHF bn) Comments Targeted investments in technology 7.6 platform, service offering and relationship managers in recent years 6.8 resulted in substantial
Slide 39: Good start to cooperation between Vontobel and ANZ
Slide 39 Good start to cooperation between Vontobel and ANZ Scope of Vontobel offering ANZ profile Asset allocation investment advice Largest bank in New Zealand Provide advice on global asset allocation Among top 4 banks in Australia for ANZ Private Banking discretionary #20 bank in the world by ma
Slide 40: Distribution strategy for Financial Products
Slide 40 Distribution strategy for Financial Products geared towards high-growth areas Derivatives market Exchange (SIX Structured Products, Börse Frankfurt, Euwax) Primary market Secondary market Issuance Fixing/listing Private placements Expiry Market description Vontobel on the exchange market de
Slide 41: Technology leadership enables the multi-issuer platform
Slide 41 Technology leadership enables next-generation solution – the multi-issuer platform Multi-issuer platform represents ground-breaking technology for structured products Market Multi-issuer potential platform Single issuer platforms Life cycle development Manual 1995 2000 2005 2010 2013 deritr
Slide 42: Vontobel participates in US Program as Category 3 institution
Slide 42 Vontobel participates in US Program as a Category 3 financial institution Vontobel with unique set-up Decision to select Category 3 All institutional activities in US (Asset Management The Program defines Category 3 financial institutions as and Brokerage) are on SEC-registered platforms si
Slide 43: Strong commitment of Vontobel family
Slide 43 Strong commitment of Vontobel family Shareholder structure as of 31-12-2014 40.0% Shares in the pooling agreement On 27 August 2014, 11.5% Vontobel families Vontobel Holding AG bought back the 12.5% 33.0% 12.5% Vontrust family holding shareholding (8.125 Publicly million registered shares h