Vontobel Holding Ag · SIX:VONN
Vontobel — FY2022 Earnings Presentation
31 slides from Vontobel's earnings presentation, Feb 8, 2023
Slide 1: Full-year 2022 results
Zeno Staub CEO Thomas Heinzl CFO Full-year 2022 results February 8, 2023
Slide 2: Cautionary statement regarding forward-looking statements and disclaimer
Cautionary statement regarding forward-looking statements and disclaimer 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 statem
Slide 3: Highlights and strategy
Highlights and strategy
Slide 4: Highlights full-year 2022
Highlights full-year 2022 – A satisfactory delivery in the context of exceptional markets – Unprecedented market declines and a record prior-year comparable – Demonstrated disciplined execution, just like in past periods of volatility – Continued solid financial performance – Strong WM results, DI n
Slide 5: Key figures
Key figures Continued attractive shareholder returns in a period of exceptional market declines Assets under management Net new money CHF 204 B CHF −5.2 B (−16%) (−2.1% growth) Operating income Pre-tax profit Group net profit CHF 1,285 M CHF 267 M CHF 230 M (−16%) (−43%) (−40%) Return on Equity Divi
Slide 6: Strong track record of value creation and successfully navigating difficult markets
Strong track record of value creation and successfully navigating difficult markets Over two decades of unbroken profitability, through-the-cycle growth and attractive shareholder returns 244 Key drivers 220 199 204 − Strict focus on investments +8% CAGR 165 171 − Long-term orientation 136 139 − Con
Slide 7: 2022 results in context – Exceptional global market decline
2022 results in context – Exceptional global market decline Annual total return of an illustrative US 50% treasuries and 50% equities multi asset portfolio1, 1900 – 2022 1908: 1918: 1921: 1932: 1938: 1970: 1975: 2009: 40% +24.3% +14.9% +13.7% +0.1% +18.6% +11.4% +21.4% +8.6% 30% 20% 10% 0% -10% -20%
Slide 8: Robust long-term performance across both Equities and Fixed Income
Robust long-term performance across both Equities and Fixed Income Track record in Vontobel mutual funds – Fixed Income: improved 1-year ranking % of fund assets with % of fund assets in 1st and 2nd quartiles2 with a continued strong long-term 4-/5-star ratings1 record 74 77 – Equity: impacted by a
Slide 9: Entering the next two-year strategic sprint towards our 2030 Lighthouse vision
Entering the next two-year strategic sprint towards our 2030 Lighthouse vision Cycle 2 Cycle 3 Cycle 4 Cycle 5 2021 2023 2025 2027 2029 2020 2022 2024 2026 2028 2030 Our priorities will capitalize on our strengths and will answer to key 2030 market shifts and industry trends, e.g.: Lighthouse Our lo
Slide 10: Strategic Priorities 2023 – 2024
Strategic Priorities 2023 – 2024 1 Delivering future proof investment solutions 2 Delivering best-in- class private client experiences 3 Accelerating our US growth 4 Scaling value creation New regimes Personalization at scale Strong regional hub Capital efficiency Review, diversify and enhance Devel
Slide 11: We are committed to being responsible citizens and partnering with our clients
We are committed to being responsible citizens and partnering with our clients AuM in investment solutions incorporating Our six Sustainability Commitments ESG-criteria – SFDR framework (CHF B)2 Path to Net-zero: Achieve net-zero1 by 2030 in our banking 2 book investments and operations Equality, Di
Slide 12: Financial results
Financial results
Slide 13: 2022 financial results summary
2022 financial results summary Key figures (CHF M) 2022 2021 ∆ (%) ∆ CC4 − Pre-tax profit decline from prior-year record due to Assets under Management (B) 204.4 243.7 −16% lower AuM and a normalization of trading activity Net New Money (B) −5.2 8.1 n.m. Operating income 1,285.1 1,535.6 −16% −16% −
Slide 14: Assets under management
Assets under management Assets under management Assets under management development (CHF B) (CHF B) +4% p.a. 243.7 243.7 219.6 5.2 3.4 198.9 204.4 36.9 165.3 171.1 204.4 6.2 AuM −16% 2017 2018 2019 2020 2021 2022 2021 NNM FX Per- Other1 2022 formance 1 CHF 6.2 B net positive impact from the acquisit
Slide 15: AuM and NNM by Client Unit
AuM and NNM by Client Unit AuM NNM and NNM growth rate (CHF B) (CHF B, annualized growth %) −16% 3.7% −2.1% – Strong WM NNM mostly from developed core markets; continued 243.7 8.1 high share of inflows into mandates 1.9 204.4 – AM NNM affected by industry-wide 5.6 5.4 market conditions and investor
Slide 16: Operating income
Operating income Operating income by category Operating income by Client Unit (CHF M) (CHF M) −16% – Reduction in operating income from record 2021 levels driven by 1,536 1,536 normalization of trading activity and 61 lower AuM 1,285 1,285 101 594 – Good net interest income (NII) 457 trajectory with
Slide 17: Return on Assets
Return on Assets Asset Management Wealth Management1 (bps) (bps) +1 bps – AM margin development coming from business mix and lower 70 71 performance fees 6 13 – WM margin slightly improved as −5 bps net interest income offset 27 42 21 transactional activity 37 Performance Performance fees normalizat
Slide 18: Operating expense
Operating expense Operating expense by category Cost / income ratio2 (CHF M) (%) – Operating expense decreased 5% −5% +9.3 pp 1,068 78.4% – Personnel expense declined 11% due to 1,018 cost containment measures in place since Q1 2022 69.1% < 72% target – Increase in General expense from 735 656 norma
Slide 19: Disciplined cost management to retain our strategic flexibility
Disciplined cost management to retain our strategic flexibility Targeting gross total cost reduction of ~11% by end 2023 Cost containment measures (Operating expenses CHF M) In place since Q1 2022: ~ 11% (CHF ~115 M) total gross reductions − Reduction of variable compensation − Freeze of headcount g
Slide 20: Capital – Strong capital levels and a conservative risk profile
Capital – Strong capital levels and a conservative risk profile Capital ratios (% of RWA) − CET1 capital ratio up 10 bps to 16.7%, more 23.4% 23.8% than absorbing the acquisition of UBS SFA2 6.8% 7.1% − CET1 capital of CHF 1,053 million AT1 − RWA decreased to CHF 6,304 million (6,617 16.6% 16.7% FY
Slide 21: Dividend – Highly capital accretive business model enables attractive returns
Dividend – Highly capital accretive business model enables attractive returns ~19% ~13% ~14% ~13% ~12% ~13% Return on equity (%) ~11% ~12%1 ~11% ~10% ~9% ~10% 2022 ROTE: 15.5% ~9% ~8% ~8% ~9% ~9% ~7% ~8% ~7% ~8% 2022 ROCET1: 20.4% ~8% ~8% ~8% Cost of equity2 (%) 3.00 3.00 2.25 2.25 2.00 2.10 2.10 1.
Slide 22: Summary of business KPIs and targets
Summary of business KPIs and targets 2022 2021 Targets Net new money growth −2.1% 3.7% 4% – 6% Operating income growth −16% 21% 4% – 6% Pre-tax profit growth −43% 46% – Net profit growth −40% 48% – Cost / income ratio 78.4% 69.1% < 72% Return on equity 11.2% 18.8% > 14% CET1 ratio 16.7% 16.6% > 12%
Slide 23: Recap and outlook
Recap and outlook
Slide 24: Recap and outlook
Recap and outlook FY 2022: We are preparing for the We will in H1 2023: possibility that the recovery – Support our clients in navigating a new We demonstrated continued may be more “U-shaped than higher inflation and interest rate disciplined execution and V-shaped” and that 2023 may environment ac
Slide 25: Q&A
Q&A
Slide 26: Appendix
Appendix
Slide 27: Upcoming events
Upcoming events Annual General Meeting 2023 April 4, 2023 3M trading update 2023 April 21, 2023 Half-year results 2023 July 27, 2023 incl. publication of half-year report 9M trading update 2023 October 23, 2023 Refer to the Vontobel Investor Relations website for details: www.vontobel.com/calendar 2
Slide 28: Summary of FX impacts and one-offs
Summary of FX impacts and one-offs Profit before tax (CHF M) −43% − Minimal FX impact on earnings reported as stronger USD offset weaker EUR and GBP −43% underlying 467.2 9.1 476.3 − Refer to the Business Review section of the Full-year report 2022 for an overview of currency 203.4 composition of op
Slide 29: AuM by asset class and ESG criteria per SFDR framework
AuM by asset class and ESG criteria per SFDR framework AuM by asset class AuM in investment solutions incorporating (CHF B) ESG-criteria – SFDR framework3 Other1 (CHF B) 2% Equity 204 18% 204 2 4 22 Other 107 14 97 assets Multi 19 Asset 93 52 54 62% Fixed 19 Income SFDR 93 22 19% 108 12 categorised
Slide 30: AuM by client domicile and mandate type
AuM by client domicile and mandate type AuM by client domicile AuM by mandate type (2022, % of total AuM) (2022, % of total AuM) Execution/ Other Custody Collective Focus APAC1 investments / Funds LATAM and MEA 9% 15% 24% 13% Switzerland Advisory 44% mandates North 19% 9% America 6% Italy 9% 43% 10%
Slide 31: Shareholder structure
Shareholder structure Vontobel families hold more than 50% of the share capital and are strongly committed to Vontobel Advontes AG 10.6% Vontrust AG 14.3% Shares in the Free float1 pooling agreement 49.1% 50.9% Vontobel Foundation 14.9% Pellegrinus Holding AG 4.7% Further shares of a family member 6