Vontobel Holding AG · SIX:VONN

Vontobel — H1 2013 Earnings Presentation

30 slides from Vontobel's earnings presentation, Jul 31, 2013

  1. Slide 1: Vontobel first-half 2013 results

    Vontobel first-half 2013 results Zeno Staub, CEO Martin Sieg Castagnola, CFO 31 July 2013 Performance creates trust

  2. Slide 2: Caution regarding forward-looking statements

    Slide 2 Caution regarding forward-looking statements This document may contain projections or other forward-looking statements related to the Vontobel Group that are subject to known and unknown risks, uncertainties and other important factors. These projections and forward-looking statements reflec

  3. Slide 3: Overview

    Slide 3 Overview  First half of 2013 at a glance  Financial results for first half of 2013  Update on strategy, capabilities and markets  Outlook

  4. Slide 4: First half of 2013 at a glance

    Slide 4 First half of 2013 at a glance Key figures Key achievements  Group net profit of CHF 76.1 mn (+20%)  Solid progress in enhancing profitability  Result includes non-recurring expenses of and operational efficiency CHF 13.7 mn in connection with adjustments  Record net inflow of new money

  5. Slide 5: CHF 160 bn in client assets – continued strong growth in Asset Management

    Slide 5 CHF 160 bn in client assets – continued strong growth in Asset Management Assets by Home Other Focus markets client market markets domicile as of 30-06-13 1 Emerging Switzerland Germany Italy UK US 2 Total (in CHF bns) Markets Total client 94.6 9.0 5.0 3.3 22.9 16.5 8.9 160 assets Private On

  6. Slide 6: UK as new focus market – strong fit between market demands and Vontobel's capabilities

    Slide 6 UK as new focus market – strong fit between market demands and Vontobel’s capabilities Market potential  AuM of asset management industry > CHF 7,000 bn 1  Actively managed assets account for more than 75% of all assets 2  Second largest number of HNWIs in Europe and fifth largest worldwi

  7. Slide 7: Overview

    Slide 7 Overview  First half of 2013 at a glance  Financial results for first half of 2013  Update on strategy, capabilities and markets  Outlook

  8. Slide 8: Key figures for first half of 2013

    Slide 8 Key figures for first half of 2013 6 months ending 30-06-13 30-06-12 31-12-12 Group net profit (in CHF mns) 1 IFRS 76.1 63.2 60.9 Basic earnings per share (CHF) IFRS 1.19 0.99 0.96 ROE (%, annualized) IFRS 9.7 8.6 8.1 BIS tier 1 ratio (%; 2013 fully applied Basel III) 25.4 24.8 27.2 Group ne

  9. Slide 9: All wealth management related business lines achieve organic growth

    Slide 9 All wealth management related business lines achieve organic growth – excellent inflows in Asset Management Development of AuM (in CHF bns) Net new money (in CHF bns) ∆ 8.2 in % 0.1 0.6 31-12-12 98.4 0.7 5.3 0.6 3.3 0.4 0.5 0.4 0.5 Net new money 8.2 8 7.4 4.1 4.1 Performance 0.0 0 -0.2 -0.9

  10. Slide 10: Operating result doubled in 1H13 – Private Banking transformation

    Slide 10 Operating result doubled in 1H13 – rigorous Private Banking transformation leads to higher run-rate Focus and excellence Pre-tax profit Private Banking (in CHF mns; 6 months)  Cross-border focus: 30.2 exiting of onshore Private Banking business in Austria, ~10 Dubai and Milan; all of these

  11. Slide 11: Very solid capital position – strong basis for further development of business

    Slide 11 Very solid capital position – strong basis for further development of business Development of capital (in CHF mns) BIS tier 1 capital (in CHF mns) Ratio 1,589 27.2% 25.4% Targets 1,552 76 1,364 1,312 -77 38 ≥ 16% Total capital 1,574 ≥ 12% Core capital 402 414 -22 1 2012 1H13 2012 Dividend O

  12. Slide 12: Fee and commission income leaps by 26%

    Slide 12 Fee and commission income leaps by 26% – slower recovery in trading income due to subdued transaction volumes Development of income (in CHF mns) Comments  to 1H12  Main earnings stream from abs. % fees and commissions, driven 450.2 by increased asset base 2.9 Total 60.1 15.4% (Ø AuM: +21%

  13. Slide 13: Continued disciplined cost management

    Slide 13 Continued disciplined cost management – non-recurring expenses due to realignment of Private Banking Development of operating expense (in CHF mns) Comments  Non-recurring expenses in 1H13:  to 1H12  CHF 10.6 mn (including personnel abs. % expense CHF 6.1 mn), one-off costs due to the adj

  14. Slide 14: Segment results reflect consistent implementation of strategy

    Slide 14 Segment results reflect consistent implementation of strategy in challenging market environment Pre-tax segment profits (in CHF mns) +49% -7% 44.5 41.6 30.2 PB 20.3 17.7 IB 24.6 1H12 2H12 1H13 1H12 2H12 1H13 +34% +8%1 40.8 46.4 -7.3 -3.4 34.7 -18.5 -17.0 -10.7 AM CC -5.4 -12.4 -23.9 -29.4 1

  15. Slide 15: Overview

    Slide 15 Overview  First half of 2013 at a glance  Financial results for first half of 2013  Update on strategy, capabilities and markets  Outlook

  16. Slide 16: Vontobel clearly emerged as one of the winners in the changed industry landscape

    Slide 16 Vontobel clearly emerged as one of the winners in the changed industry landscape Positioned to achieve further growth:  Our clients have entrusted us with more than CHF 20 bn in the last 24 months – Share of pre-tax profit from Asset Management and Private Banking rose from 33% to 65% 1 –

  17. Slide 17: Strategic performance targets for 2014 unchanged

    Slide 17 Strategic performance targets for 2014 unchanged Turning potential into performance 20141 Revenues > CHF 1,000 mn 1 2012 1H13 Client assets3 > CHF 175 bn 2012 1H13 Cost/income < 75% 2012 1H13 ROE > 10% 2012 1H13 1 Based on organic growth 2 Annualized 3 Assets under management, custody asset

  18. Slide 18: Overview

    Slide 18 Overview  First half of 2013 at a glance  Financial results for first half of 2013  Update on strategy, capabilities and markets  Outlook

  19. Slide 19: Markets and environment will create significant challenges but also attractive opportunities

    Slide 19 Markets and environment will create significant challenges but also attractive opportunities Outlook for 2H13  Monetary policy risk and increased political uncertainty in Emerging Regions could weigh on markets  Very strong market volatility in June has impacted asset levels and investor

  20. Slide 20: The Vontobel Group

    Slide 20 Private Banking Investment Banking Asset Management = fx) co © Fe Z © > Performance creates trust

  21. Slide 21: Stable majority of votes and capital

    Slide 21 Stable majority of votes and capital Shareholder structure as of 30 June 2013 Vontobel families 11.5% (shareholder pooling agreement) Shares in the Vontrust family holding 12.5% 33.6% Publicly held pooling (shareholder pooling agreement) agreement 40.0% Unlocked shares Vontobel Foundation a

  22. Slide 22: Conservative balance sheet ratios

    Slide 22 Conservative balance sheet ratios – reflecting high level of client deposits and business with structured products Balance sheet as of 30 June 2013 CHF 19.9 bn CHF 19.9 bn 0.8 Liquidity and banks Cash at SNB, with first- Liquidity class counterparties and on 7.6 and banks a collateralized b

  23. Slide 23: Regulatory capital as of 30 June 2013

    Slide 23 Regulatory capital as of 30 June 2013 Allocation of regulatory capital according to BIS standards (in CHF mns) Other in CHF mns 228.8 Operational risk 549.3 7.5 Market risk 43.4 Credit risk 135.8 115.0 126.9 103.4 147.2 90.2 70.6 3.5 0.0 194.6 57.7 47.4 33.2 34.9 103.9 30.7 39.3 23.1 10.8 P

  24. Slide 24: Valuation effects and development of spreads

    Slide 24 Valuation effects and development of spreads 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 400 BPS 300 200 194 100 102 111 112 70 59 20 34 38 12 17 10 6 2 0.2 10 0.1 7 7 0 -9 -6 -2 -6 -29 -32 -24 -78 -59 -65 -87 -90 -136 in CHF -282 mns Valuation effect: assets Valuation effect: li

  25. Slide 25: High quality of bond portfolio maintained – 66% of exposure in AAA and AA

    Slide 25 High quality of bond portfolio maintained – 66% of exposure in AAA and AA counterparties Counterparty exposure by rating (as of 30-06-13) Counterparty exposure by sector (as of 30-06-13) The purpose of the actively managed bond portfolio of CHF 8.7 bn is a) to hedge structured products CHF

  26. Slide 26: Financial Products: market statistics for Switzerland

    Slide 26 Financial Products: market statistics for Switzerland Scoach Switzerland – all products (CHF mns) Vontobel turnover (lhs) Total market turnover (lhs) Vontobel market share in volume (rhs) Vontobel share in no. of trades (rhs) Source: Technolab  Vontobel with strong focus on retail and priv

  27. Slide 27: Financial Products: market statistics for Germany

    Slide 27 Financial Products: market statistics for Germany DDV – all products (EUR mns) 8,000 6% 7,000 5% 6,000 4% 5,000 4,000 3% 3,000 2% 2,000 1% 1,000 ,0 0% Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dez 12 Mar 13 Jun 13 Vontobe

  28. Slide 28: Distribution strategy for Financial Products is geared towards high-growth areas

    Slide 28 Distribution strategy for Financial Products is geared towards high-growth areas Derivatives market Exchange (Scoach, Euwax) Primary market Secondary market fixing / issuance listing expiry Private placements / OTC Market description Vontobel at the exchange market deritrade® - Switzerland

  29. Slide 29: Well-balanced asset base across products and asset classes

    Slide 29 Well-balanced asset base across products and asset classes AuM by asset class as of 31-12-12 Group AuM 2% (as of 30-06-13) AuM by asset class (as of 30-06-13) Comments Private Banking & Investment Banking in CHF bns Private clients still hold 108.1 26% of their assets in 98.4 10% cash 10%

  30. Slide 30: Excellent performance quality is recognized by the market

    Slide 30 Excellent performance quality is recognized by the market – cornerstone of our integrated business model Lipper Fund Awards Strong investment platform 2013  VF – China Stars Equity (Germany, Best fund in category “Chinese Austria, Spain, Taiwan) equity”over 3 years  77% of equity fund ass

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