Vp Bank Ag Class A · SIX:VPBN
Vp Bank Ag Class A — FY2015 Earnings Presentation
48 slides from Vp Bank Ag Class A's earnings presentation, Mar 8, 2016
Slide 1: VP Bank Group Annual results 2015
VP Bank Group 8 March 2016 VP Bank Group Annual results 2015 Park Hyatt, Zurich
Slide 2: Welcome and introduction
Welcome and introduction Fredy Vogt Chairman of the Board of Directors
Slide 3: Schedule
Schedule 1 Welcome and introduction Fredy Vogt, Chairman of the Board of Directors 2 Annual results 2015 Siegbert Näscher, Chief Financial Officer 3 Strategy implementation Alfred W. Moeckli, Chief Executive Officer 4 Questions and answers 3
Slide 4: Welcome and introduction
Welcome and introduction Fredy Vogt Chairman of the Board of Directors
Slide 5: Annual results 2015
Annual results 2015 Siegbert Näscher Chief Financial Officer 5
Slide 6: Overview of topics
Overview of topics • Profile • Income statement • Balance sheet • Client assets under management • Segments • Dividends • Summary 6
Slide 7: Profile
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Slide 8: VP Bank in 2015 (1/2)
VP Bank in 2015 (1/2) • Merger with and successful integration of Centrum Bank Group net income CHF 64.1 million • Increased efficiency thanks to continued Group integration • Challenging interest-rate and currency developments • Expansion of front-office activities and Cost/income positive influx o
Slide 9: VP Bank in 2015 (2/2)
VP Bank in 2015 (2/2) • Increase in share capital • Issue of two bonds • Completion of two share buybacks • Implementation of Basel III / CRD IV S&P rating A–/Negative/A–2 Tier 1 ratio Shareholders’ 24.4% equity CHF 918 million 9
Slide 10: Income statement
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Slide 11: Adjusted Group net income rising
Adjusted Group net income rising 11
Slide 12: Income statement
Income statement in CHF million 2013 2014 2015 Gross income 239.4 222.7 306.6 Operating expenses –168.0 –165.3 –182.1 Depreciation and provisions –33.4 –36.8 –64.3 Taxes –2.3 –0.6 3.9 Discontinued companies 3.0 0.0 0.0 Group net income 38.7 20.0 64.1 12
Slide 13: Interest business
Interest business in CHF million 86.9 84.5 65.6 • Volume and margin increase in 8.5 23.4 client lending 27.4 26.3 • Reduction in interest expense in client deposits • Low interest-rate environment 65.4 and negative SNB interest rate 52.0 54.1 impact on treasury result • Introduction of hedge account
Slide 14: Commission business and services
Commission business and services in CHF million 126.4 • Increase resulting from the 118.4 114.1 acquisition of client assets under 35.9 management at Centrum Bank 36.7 34.8 • Appreciation of the Swiss franc cuts earnings base • Restrained transaction volume 90.5 79.3 81.7 2013 2014 2015 Transaction-
Slide 15: Operating expenses
Operating expenses in CHF million 182.1 168.0 165.3 • Integration and restructuring costs resulting from the 60.2 Centrum Bank merger and 46.0 46.8 integration • Cost reductions as a result of using Group synergies • Reduction in personnel costs 122.0 121.9 as a result of IAS 19 118.5 2013 2014 2015
Slide 16: Balance sheet
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Slide 17: Sound balance sheet as at December 2015
Sound balance sheet as at 31 December 2015 in CHF billion 0.1 Due to banks • Increase in total assets as a result of the Centrum Bank Cash and cash equivalents 3.0 merger • Marked increase in client Due from banks 2.1 lending and deposits, as well as financial 10.8 Client deposits instruments • High
Slide 18: Solid and strong balance sheet ratios
Solid and strong balance sheet ratios 31.12.2013 31.12.2014 31.12.2015 Total assets in CHF billion 11.2 11.2 12.4 Risk-weighted assets in CHF billion 4.1 4.2 3.7 Equity in CHF million 888.7 868.5 918.1 Core capital in CHF million1 840.8 860.5 910.9 Tier 1 ratio1 20.4% 20.5% 24.4% Leverage ratio2 7.5
Slide 19: Client assets under management
Client assets under management 19
Slide 20: Increase in client assets under management
Increase in client assets under management in CHF billion 20
Slide 21: Minimal changes in asset classes / currencies
Minimal changes in asset classes / currencies 2013 2014 2015 2% 3% 3% Asset classes 25% 31% 25% 32% 27% 30% Liquidity Bonds Equities Funds 21% 20% Other 21% 20% 20% 20% 2013 2014 2015 13% 13% 13% 26% Currencies 26% 26% CHF EUR 24% USD 27% 31% Other 30% 37% 34% 21
Slide 22: Segments
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Slide 23: Segment overview as of December 2015
Segment overview as of 31 December 2015 Client Client Corporate Business Business Group Center Liechtenstein International Business volume in CHF1 28.4 billion 11.3 billion – 39.8 billion Net new money in CHF 5.8 billion 0.2 billion – 6 billion Pre-tax net income in CHF 77.2 million –2.6 million –14
Slide 24: Dividends
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Slide 25: Dividends
Dividends Dividends in CHF Payout ratio 4.01 3.5 87.9% 3.0 53.2% 39.3%1 2013 2014 2015 2013 2014 2015 1 Proposal to the annual general meeting 25
Slide 26: Consistently high dividend yield
Consistently high dividend yield 4.9%1 3.6% 3.5% 2013 2014 2015 1 Proposal to the annual general meeting 26
Slide 27: Summary
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Slide 28: VP Bank Group – summary
VP Bank Group – summary Growth in line with strategy • Merger with Centrum Bank • Inflow of net new money in our growth markets Strong operative performance • Integration of Centrum Bank • Using of Group synergies • Further development of front- office activities Secure and stable Bank • Increase in
Slide 29: Strategy implementation
Strategy implementation Alfred W. Moeckli Chief Executive Officer
Slide 30: Medium-term goals 2020
Medium-term goals 2020 Cost/income Client assets ratio under under management 70 per cent of CHF 50 billion Group net income of CHF 80 million 30
Slide 31: Key issues in 2016
Key issues in 2016 Growth Focus Culture 1 Internationalisation 2 Strengthening 6 Optimising the balance 8 Strengthening the sales intermediary position sheet and performance culture 3 Strengthening private banking 7 Reducing internal 9 Strengthening 4 Expanding the fund complexity the entrepreneuria
Slide 32: Key issues in 2016
Key issues in 2016 Growth Focus Culture 1 Internationalisation 2 Strengthening 6 Optimising the balance 8 Strengthening the sales intermediary position sheet and performance culture 3 Strengthening private banking 7 Reducing internal 9 Strengthening 4 Expanding the fund complexity the entrepreneuria
Slide 33: Internationalisation
Internationalisation Luxembourg 2015: Asia Set-up adjusted 2015: 2016: Successful growth Expansion of front 2016: office Front-office expansion and collaboration between locations Switzerland 2015: Focus on sales organisation 2016: Reinforced market development 33
Slide 34: Use of acquisition opportunities
Use of acquisition opportunities Acquisition of selected Between portfolios and CHF 5 and 25 billion Sufficient advisory teams in client assets shareholders’ under management equity available Cultural Markets fit • Switzerland essential • Luxembourg • Liechtenstein 34
Slide 35: Key issues in 2016
Key issues in 2016 Growth Focus Culture 1 Internationalisation 2 Strengthening 6 Optimising the balance 8 Strengthening the sales intermediary position sheet and performance culture 3 Strengthening private banking 7 Reducing internal 9 Strengthening 4 Expanding the fund complexity the entrepreneuria
Slide 36: Strengthening intermediary position
Strengthening intermediary position Offering (services/ pricing) Digitalisation Position Organisation/ internal coordination 36
Slide 37: Key issues in 2016
Key issues in 2016 Growth Focus Culture 1 Internationalisation 2 Strengthening 6 Optimising the balance 8 Strengthening the sales intermediary position sheet and performance culture 3 Strengthening private banking 7 Reducing internal 9 Strengthening 4 Expanding the fund complexity the entrepreneuria
Slide 38: Strengthening the private banking segment
Strengthening the private banking segment Leverage points: quality of advisory services and offering “Professional” clients Advisory clients UHNWI • For qualified private • Consistent first-class • Complex needs call for investors and external quality of advisory interdisciplinary asset managers wit
Slide 39: Key issues in 2016
Key issues in 2016 Growth Focus Culture 1 Internationalisation 2 Strengthening 6 Optimising the balance 8 Strengthening the sales intermediary position sheet and performance culture 3 Strengthening private banking 7 Reducing internal 9 Strengthening 4 Expanding the fund complexity the entrepreneuria
Slide 40: Expanding the fund business VP Fund Solutions
Expanding the fund business VP Fund Solutions Significance and positioning Already an Two locations, important Luxembourg existing business Addition and segment to intermediary Liechtenstein and private- banking business One-stop shop fund Increasing management importance and custodian bank from a s
Slide 41: Key issues in 2016
Key issues in 2016 Growth Focus Culture 1 Internationalisation 2 Strengthening 6 Optimising the balance 8 Strengthening the sales intermediary position sheet and performance culture 3 Strengthening private banking 7 Reducing internal 9 Strengthening 4 Expanding the fund complexity the entrepreneuria
Slide 42: Key issues in 2016
Key issues in 2016 Growth Focus Culture 1 Internationalisation 2 Strengthening 6 Optimising the balance 8 Strengthening the sales intermediary position sheet and performance culture 3 Strengthening private banking 7 Reducing internal 9 Strengthening 4 Expanding the fund complexity the entrepreneuria
Slide 43: Key issues in 2016
Key issues in 2016 Growth Focus Culture 1 Internationalisation 2 Strengthening 6 Optimising the balance 8 Strengthening the sales intermediary position sheet and performance culture 3 Strengthening private banking 7 Reducing internal 9 Strengthening 4 Expanding the fund complexity the entrepreneuria
Slide 44: Key issues in 2016
Key issues in 2016 Growth Focus Culture 1 Internationalisation 2 Strengthening 6 Optimising the balance 8 Strengthening the sales intermediary position sheet and performance culture 3 Strengthening private banking 7 Reducing internal 9 Strengthening 4 Expanding the fund complexity the entrepreneuria
Slide 45: Key issues in 2016
Key issues in 2016 Growth Focus Culture 1 Internationalisation 2 Strengthening 6 Optimising the balance 8 Strengthening the sales intermediary position sheet and performance culture 3 Strengthening private banking 7 Reducing internal 9 Strengthening 4 Expanding the fund complexity the entrepreneuria
Slide 46: Centrum Bank – successful integration
Centrum Bank – successful integration • Completed in January 2016 • All objectives achieved • Project plan implemented on schedule • IT landscape integrated • Integration costs below budget • Rapid cultural integration of employees under way • Fewer job losses than expected 46
Slide 47: Questions and answers
Questions and answers
Slide 48: Safely ahead.
BANK Safely ahead.