Vp Bank Ag Class A · SIX:VPBN
Vp Bank Ag Class A — FY2014 Earnings Presentation
50 slides from Vp Bank Ag Class A's earnings presentation, Mar 3, 2015
Slide 1: VP Bank Group Annual results 2014
VP Bank Group 3 March 2015 VP Bank Group Annual results 2014 Park Hyatt Zurich
Slide 2: Welcome and introduction
Welcome and introduction Fredy Vogt Chairman of the Board of Directors
Slide 3: Programme
Programme 1 Welcome and introduction Fredy Vogt, Chairman of the Board of Directors 2 Annual results 2014 and developments in 2015 Siegbert Näscher, Chief Financial Officer 3 Important topics relating to strategy implementation Alfred W. Moeckli, Chief Executive Officer 4 Questions and answers 3
Slide 4: Fredy Vogt
Fredy Vogt Chairman of the Board of Directors 4
Slide 5: Annual results 2014 and developments in 2015
Annual results 2014 and developments in 2015 Siegbert Näscher Chief Financial Officer 5
Slide 6: Overview of topics
Overview of topics • Annual results 2014 • Profile and medium-term objectives as of 31 December 2014 • Income statement • Balance sheet • Client assets under management • Segments • Dividend • Summary • SNB decision of 15 January 2015 6
Slide 7: Annual results 2014
Annual results 2014 7
Slide 8: VP Bank Group – profile as of 31 December 2014
VP Bank Group – profile as of 31 December 2014 Headcount Shareholders’ (FTE): equity: 695 CHF 869 million Client assets under management: CHF 31 billion Group net Income: S&P rating: CHF 20 million A–/Negative/A-2 8
Slide 9: Medium-term objectives
Medium-term objectives Net new money in CHF million Cost/income ratio + = ° ww N 20.5% = = mm ial c ° c ~ S N ag S 20.4% = m N c ° nN g = N = m c R = a S x 18.0% * Target Target Statutory requirement: Target: 1) Excluding one-time effect of IAS 19 5.0% 65.0% 8.0% 13.0% 16.0% old as of 01/02/15 Va 9
Slide 10: Income statement
Income statement 10
Slide 11: Adjusted Group net income increases by 32.4%
Adjusted Group net income increases by 32.4% 2013 in CHF million 2014 +32.4% 11
Slide 12: Income statement
Income statement in CHF million 2012 2013 2014 Gross income 235.2 239.4 222.7 Operating expenses –170.51 -168.0 -165.3 Depreciation and provisions -36.7 -33.4 -36.8 Taxes -1.7 -2.3 -0.6 Discontinued companies -1.8 3.0 0.0 Group net income 24.5 38.7 20.0 Adjusted Group net income 30.2 27.2 36.0 1 Exc
Slide 13: Interest business (1/2)
Interest business (1/2) in CHF million 8.5 • Expansion of treasury activities 39.1 26.3 27.4 • Volume and margin increase in client business • Volatility in connection with interest rate hedging 52.0 54.1 transactions due to interest rate 50.1 environment –5.7 –16.0 2012 2013 2014 Interest rate hedg
Slide 14: Interest business (2/2)
Interest business (2/2) Interest rate development of CHF 10-year swap versus 6-month LIBOR 1.6% 1.2% 0.8% 0.4% 0.0% Impact on income statement in CHF million 8.5 ff Interest rate hedging transaction (IRS) -5.7 — Underlying transaction (mortgage): no change in value in income statement 2012 2013 2014
Slide 15: Commission business and services
Commission business and services in CHF million 114.1 118.4 108.0 • Increase due to assumption of assets of HSBC Trinkaus & 36.7 Burkhardt in Luxembourg 34.8 32.0 • Increase due to price and fee adjustments • Increased client activity 76.0 79.3 81.7 2012 2013 2014 Transaction-based income Portfolio-
Slide 16: Operating expenses
Operating expenses in CHF million 170.51 168.0 165.3 • Lower costs despite assumption of employees of 46.7 46.0 HSBC Trinkaus & Burkhardt in 46.8 Luxembourg • Additional expenses in connection with projects aimed at achieving our growth objectives 123.81 122.0 118.5 • Ongoing cost reductions through
Slide 17: Balance sheet
Balance sheet 17
Slide 18: Solid balance sheet as of 31 December 2014
Solid balance sheet as of 31 December 2014 in CHF billion 0.3 Due to banks • High level of liquid assets Cash and cash 1.9 equivalents • Increase in client loans • Client deposits and shareholders’ equity Due from banks 3.3 steady 9.6 Client deposits Client loans 4.3 Financial instruments 1.4 0.4 Ot
Slide 19: Strong balance sheet ratios
Strong balance sheet ratios 31/12/2012 31/12/2013 31/12/2014 Total assets in CHF billion 10.6 11.2 11.2 Risk-weighted assets in 3.9 4.1 4.2 CHF billion Tier 1 ratio 21.5% 20.4% 20.5% Leverage ratio1 7.8% 7.5% 7.7% Loan-to-deposit ratio2 41.3% 40.7% 44.2% Non-performing loans3 0.6% 0.5% 0.3% Share of
Slide 20: Client assets under management
Client assets under management 20
Slide 21: Stable level of client assets under management
Stable level of client assets under management in CHF billion 21
Slide 22: Minor changes in asset classes/currencies
Minor changes in asset classes/currencies 2012 2013 2014 3% 2% 3% Asset classes 23% 25% 31% 31% 25% 32% Liquidity Bonds Equities Funds 18% 21% 20% Other 25% 21% 20% 2012 2013 2014 14% 13% 13% Currencies 28% 26% 26% CHF EUR 22% 24% 27% USD Other 36% 37% 34% 22
Slide 23: Segments
Segments 23
Slide 24: Segment overview as of 31 December 2014
Segment overview as of 31 December 2014 Client Client Corporate Business Business Group Center Liechtenstein International Business volume in CHF1 22.9 billion 12.3 billion – 35.2 billion Net new money in CHF –0.2 billion –0.6 billion – –0.8 billion Pre-tax net income in CHF 48.2 million 14.4 millio
Slide 25: Dividend
Dividend 25
Slide 26: Dividend
Dividend 2013 2014 in CHF million in CHF Group net income Total Total Dividend per bearer share attributable to dividend dividend shareholders of before capital after capital VP Bank increase increase 1 Proposal to the annual general meeting 26
Slide 27: Constant dividend yield
Constant dividend yield 2009 2010 2011 2012 2013 2014 27
Slide 28: Summary
Summary 28
Slide 29: VP Bank Group – summary
VP Bank Group – summary • Constant equity capital • Solid tier 1 ratio of 20.5% • Increase in adjusted Group net income by 32.4% • Increased income from operative business • Lower operating expenses despite growth strategy 29
Slide 30: SNB decision of 15 January 2015
SNB decision of 15 January 2015 30
Slide 31: Stable basis – measures implemented
Stable basis – measures implemented 1% 13% 11% 5% • Client assets under 16% management higher than at end 26% of 2014 thanks to takeover of 27% Centrum Bank • Mismatch of 47% for 32% CHF income/costs 34% 78% • No credit losses due to lifting of exchange rate floor 31% • Strengthening of income thank
Slide 32: Important topics relating to strategy implementation
Important topics relating to strategy implementation Alfred W. Moeckli Chief Executive Officer
Slide 33: Location overview
Location overview Luxembourg Moscow Hong Kong • Cultural change • New representative • Greater activity in • HSBC integrated • Greater activity premium finance and • “Insieme” project market development • VP Fund Solutions Vaduz • Integration of BVI Centrum Bank • New CEO • Apollo • Structured Singa
Slide 34: Location overview
Location overview Luxembourg Moscow Hong Kong • Cultural change • New representative • Greater activity in • HSBC integrated • Greater activity premium finance and • “Insieme” project market development • VP Fund Solutions Vaduz • Integration of BVI Centrum Bank • New CEO • Apollo • Structured Singa
Slide 35: Integration of Centrum Bank – timetable
Integration of Centrum Bank – timetable 35
Slide 36: Key figures of VP Bank and Centrum Bank
Key figures of VP Bank and Centrum Bank VP Bank Group Centrum Bank Pro forma 31/12/2014 31/12/2014 Group Client assets 38.6 7.1 45.7 in CHF billion Total assets 11.2 1.9 13.1 in CHF billion Tier 1 ratio 20.5% 11.8% 19.5% Headcount in FTEs 695 83 778 The above figures are estimates. Data: VP Bank Gro
Slide 37: “Apollo” milestones
“Apollo” milestones Creation of segment and Introduction of market purity “best manager approach” Improvement of sales excellence 37
Slide 38: Optimisation of investment process
Optimisation of investment process 38
Slide 39: Investment offering – old world
Investment offering – old world 39
Slide 40: Investment offering – new world
Investment offering – new world 40
Slide 41: Performance comparison after SNB decision
Performance comparison after SNB decision 102.0 101.0 100.0 99.0 98.0 97.0 96.0 95.0 94.0 31 Dec 5 Jan 10 Jan 15 Jan 20 Jan 25 Jan 30 Jan 4 Feb 9 Feb VP Bank Conservative (CHF) LLB LGT JB CS UBS Source: Morningstar 41
Slide 42: Topics in 2015
Topics in 2015 Implementation and refinement © of advisory standards Strengthen front office @ @ Work actively on segments and markets Stand out through @ client proximi M 'y @ Further develop sales culture Structure/foundation in place wyBANK 42
Slide 43: Location overview
Location overview Luxembourg Moscow Hong Kong • Cultural change • New representative • Greater activity in • HSBC integrated • Greater activity premium finance and • “Insieme” project market development • VP Fund Solutions Vaduz • Integration of BVI Centrum Bank • New CEO • Apollo • Structured Singa
Slide 44: VP Fund Solutions
VP Fund Solutions • Head of VP Fund Solutions since 1 January 2015 • Luxembourg as the clear market leader in the European fund market – Liechtenstein as a niche player • Exploitation of synergies • Positioning as a provider of comprehensive fund services for fund promoters – in short a “one-stop sh
Slide 45: Corporate Center – topics in 2014 and 2015
Corporate Center – topics in 2014 and 2015 45
Slide 46: Tax compliance at VP Bank
Tax compliance at VP Bank Process of ensuring tax transparency of our clients Expanded is well advanced LBA guideline on tax compliance Additional active support with a view to AEOI 46
Slide 47: Outlook for 2015
Outlook for 2015 1. Integration of Centrum Bank into VP Bank 2. Simplification/harmonisation of business processes and optimisation of resources at VP Bank in Luxembourg 3. Bundling/coordination of fund know-how 4. Strengthening of front offices as well as exploitation of savings potential and syner
Slide 48: Cultural development – vision
Cultural development – vision 48
Slide 49: Questions and answers
« i ts) i Go e e s 6 a 6 o ® 3] 3) s e ° 2 are e Go fo) Questions and answers
Slide 50: Safely ahead.
BANK Safely ahead.