Vontobel Holding AG · SIX:VONN
Vontobel — FY2009 Earnings Presentation
31 slides from Vontobel's earnings presentation, Feb 25, 2010
Slide 1: Presentation of 2009 financial results
Presentation of 2009 financial results
Slide 2: Presentation of 2009 financial results
Presentation of 2009 financial results Herbert J. Scheidt, CEO Dr Martin Sieg Castagnola, CFO 25 February 2010 Slide 2
Slide 3: Overview
Overview Key figures Vontobel Group Business units - Private Banking - Investment Banking - Asset Management - Corporate Center Summary and outlook Slide 3
Slide 4: Key figures
Key figures Financial year ending 31-12-09 31-12-08 ∆ Net profit before minorities (in CHF mns) 138.3 113.0 22% Basic earnings per share (in CHF) 2.17 1.78 22% Dividend (CHF) 1.401 1.20 17% Return on equity (ROE) 9.7% 8.1% 1.6PP Cost/income ratio2 (%) 79.1% 80.6% -1.5PP Total assets (in CHF bns) 114
Slide 5: Overview
Overview Key figures Vontobel Group Business units - Private Banking - Investment Banking - Asset Management - Corporate Center Summary and outlook Slide 5
Slide 6: Vontobel Group achieves net profit of CHF 138.3 mn
Vontobel Group achieves net profit of CHF 138.3 mn Total operating income (in CHF mns) Net profit before minorities (in CHF mns) 991 756 785 268 2H 453 4% 290 429 2H 98 1H 538 466 356 2007 2008 2009 138 Operating expense (in CHF mns) 113 22% 668 619 633 76 2% 1H 170 2H 336 292 348 115 62 1H 332 327
Slide 7: Operating income: strong trading income compensates for decline in fee and commission income
Operating income: strong trading income compensates for decline in fee and commission income Development of income positions Comments ∆ to 2008 in CHF mns abs. % Lower average 991.0 asset base and 2.9 conservative client conduct impact 785.0 Total 29.0 4% commission 369.0 756.0 21.0 Other income -5.
Slide 8: Continuation of growth initiatives – cost discipline limits rise in operating expense
Continuation of growth initiatives – cost discipline limits rise in operating expense Development of operating expense Comments in CHF mns ∆ to 2008 Reduction in abs. % general expense, particularly in the 667.6 +4.9 14.4 2% areas of marketing 618.7 633.1 Total 38.6 and representation 53.2 61.9 Depr
Slide 9: Subdued inflow of new money
Subdued inflow of new money Net inflow of new money Growth in AuM in CHF bns in CHF bns In % 5.8 31-12-08 62.4 NNM 2.3 3.7 Vontobel 3.1 3.9 FX/Market 6.6 10.6 1.1 performance 2.1 Acquisition 4.1 6.5 Commerzbank NNM 2.7 2.8 1.7 -0.2 -0.3 Commerzbank 0.6 31-12-09 75.2 20.5 -0.2 2007 2008 2009 Private
Slide 10: Solid capital base and conservative risk policy
Solid capital base and conservative risk policy Key figures: balance sheet and risk in CHF mns 31-12-09 31-12-08 ∆ Shareholders' equity excl. minority 1,484 1,370 8% interests Tier 1 capital (BIS) 1,231 974 26% Risk-weighted positions 5,895 5,292 11% BIS tier 1 ratio (%) 20.9 18.4 2.5PP Total assets
Slide 11: Significantly improved result in Investment Banking
Significantly improved result in Investment Banking Pre-tax segment profit (in CHF mns) Breakdown of profit 83.1 Segment results 2009 ∆ (in CHF mns) 51.0 08/09 PB -58% 21.2 21.2 -29.8 2007 2008 2009 147.1 69.6 181.4 147.1 77.5 90% IB 31.5 -44.8 2007 2008 2009 Corporate Center -47.9 19.6 86.3 76.3 -5
Slide 12: Overview
Overview Key figures Vontobel Group Business units - Private Banking - Investment Banking - Asset Management - Corporate Center Summary and outlook Slide 12
Slide 13: Private Banking impacted by changing environment
Private Banking impacted by changing environment Key figures Private Banking 31-12-091 31-12-08 ∆ Operating income (in CHF mns) 212.6 236.0 -10% Pre-tax segment profit 21.2 51.0 -58% (in CHF mns) Segment result before valuation 30.5 54.5 -44% adjustments and taxes (in CHF mns) Cost/income ratio2 (%)
Slide 14: Private Banking: expansion in core markets
Private Banking: expansion in core markets Development of net new money Highlights in CHF bns Sustained net inflows of new money in onshore markets of Switzerland and 2.4 2.1 Germany as well as in offshore 0.6 market of Eastern Europe -0.2 2007 2008 2009 Strengthening of Swiss core Operating income
Slide 15: Investment Banking grows profit by 90%
Investment Banking grows profit by 90% Key figures Investment Banking 31-12-09 31-12-08 ∆ Operating income (in CHF mns) 373.2 299.8 24% Pre-tax segment profit 147.1 77.5 90% (in CHF mns) Cost/income ratio1 (%) 60.1 72.8 -12.7PP Structured products issued (in CHF bns) 9.3 8.5 9% Assets under manageme
Slide 16: Investment Banking: Vontobel Financial Products is market leader for listed structured products in Switzerland
Investment Banking: Vontobel Financial Products is market leader for listed structured products in Switzerland Development of Scoach trading volumes Highlights 7'000 35% 6'000 30% Leadership position in 5'000 25% area of SIX-listed 4'000 20% 3'000 15% structured products 2'000 10% 1'000 5% Developme
Slide 17: Asset Management records lower profit in challenging operating environment
Asset Management records lower profit in challenging operating environment Key figures Asset Management 31-12-09 31-12-08 ∆ Operating income (in CHF mns) 177.4 237.1 -25% Pre-tax segment profit 31.5 76.3 -59% (in CHF mns) Cost/income ratio1 (%) 81.9 66.7 15.2PP Assets under management (in CHF bns) 3
Slide 18: Asset Management reports accelerated inflow of new money in second half of 2009
Asset Management reports accelerated inflow of new money in second half of 2009 AuM by asset class Highlights 1.5% 2.0% 2.0% Money market Sustained inflows of new money 13.3% 17.6% 18.5% Bonds 2.5% 1.2% 0.0% Other in mandates business 27.1% 32.7% 31.6% Balanced Good relative performance by 41.5% 31.
Slide 19: Corporate Center – increased result in Treasury – integration costs relating to acquisition of Commerzbank (Schweiz) AG
Corporate Center – increased result in Treasury – integration costs relating to acquisition of Commerzbank (Schweiz) AG Key figures Corporate Center 31-12-09 31-12-08 ∆ Operating income (in CHF mns) 21.8 (16.9) nm Pre-tax segment result (47.9) (67.5) nm (in CHF mns) Operating expense (in CHF mns) 69
Slide 20: Overview
Overview Key figures Vontobel Group Business units - Private Banking - Investment Banking - Asset Management - Corporate Center Summary and outlook Slide 20
Slide 21: Summary of 2009 performance
Summary of 2009 performance Result underscores interaction of businesses in integrated model Group Cost discipline proves effective Measures taken to increase momentum in wealth and asset management Solid financial basis provides flexibility Growth in Private Banking accelerated by new management te
Slide 22: Outlook 2010
Outlook 2010 Continue growth initiatives and realize benefits of investments in business Group Maintain cost discipline and enhance operating efficiency Increase inflow of new money Grow onshore presence in Switzerland Private Grow operations and achieve profitability in Germany Banking Expand in of
Slide 23: Presentation of 2009 financial results
Presentation of 2009 financial results
Slide 24: Appendix
VONTOBEL Appendix Slide 24
Slide 25: Stable majority of votes and capital
Stable majority of votes and capital Shareholder structure as of 31-12-09 Vontobel families 11.5% (shareholder pooling agreement) Publicly held 32.8% Shareholders Vontrust family holding 12.5% in the pooling (shareholder pooling agreement) agreement 40.0% Unlocked shares Vontobel Foundation and of t
Slide 26: Solid equity position
Solid equity position Shareholders' equity BIS tier 1 capital Market capitalization Ratio Payout ratio 22.9% 21.4% 18.4% 20.9% 50% 48% 67% 65% in CHF mns in CHF mns in CHF mns 1,484 3,457 3,364 1,341 1,421 1,231 1,135 1,370 1,881 974 1,387 256 264 1,287 503 472 396 423 139 113 2006 2007 2008 2009 20
Slide 27: Regulatory capital
Regulatory capital Allocation of regulatory capital according to BIS standard1 666.7 in CHF mns 278.2 195.1 37.9 56.1 126.6 147.8 123.4 117.3 1.2 192.8 79.8 142.2 50.6 77.4 35.5 71.6 152.2 32.5 42.0 33.8 6.1 Private Banking Investment Asset Management Corporate Center Total Banking Credit riks Marke
Slide 28: Upgrading of IT system completed
Upgrading of IT system completed Development of depreciation rate in CHF mns Capital expenditure Depreciation Depreciation rate1 10% 9% 6% 6% 93.9 85.4 61.9 53.8 53.2 38.6 39.4 30.9 2006 2007 2008 2009 1 Depreciation as % of operating expense (incl. depreciation ) Slide 28
Slide 29: Update on acquisition of Commerzbank (Schweiz) AG
Update on acquisition of Commerzbank (Schweiz) AG Acquisition costs under IFRS: CHF 123.8 mn Purchase price of which goodwill & intangible assets CHF 54.2 mn Goodwill & intangible assets = 1.2% AuM Integration Approx. CHF 18 mn for redundancies, depreciation, etc. costs of which CHF 7.9 mn was alrea
Slide 30: Assets under management by investment category and currency
Assets under management by investment category and currency Aum by investment category Aum by currency 5% 13% 12% 34% 36% 6% 19% 13% 30% 32% Equities Bonds CHF EUR Funds Alternative investments USD Other Liquidity Other As of 31-12-09 Slide 30
Slide 31: High quality of bond portfolio
High quality of bond portfolio Comments Assets … … Other (4%) State or 78% of bond explicit Optionen A portfolio has a rating guarantee of at least AA or a 18% state guarantee 40% Thanks to active Bonds portfolio AA 31% management, 9,364 mn 7% quality was maintained despite AAA upgrade/downgrade rat