Vp Bank Ag Class A · SIX:VPBN
Vp Bank Ag Class A — H1 2018 Earnings Presentation
32 slides from Vp Bank Ag Class A's earnings presentation, Aug 21, 2018
Slide 1: Semi-annual results Analysts conference
VP Bank Group · 21 August 2018 Semi-annual results Analysts conference 1
Slide 2: Welcome
Welcome Fredy Vogt · Chairman of the Board of Directors 2
Slide 3: Programme
Programme •Growth – Share price – Rating Alfred W. Moeckli, Chief Executive Officer •VP Bank Group 2018 semi-annual financial statement Siegbert Näscher, Chief Financial Officer •Outlook Alfred W. Moeckli, Chief Executive Officer •Questions & answers 3
Slide 4: Growth – Share price – Rating
Growth – Share price – Rating Alfred W. Moeckli · Chief Executive Officer 4
Slide 5: Anniversary year and investment in growth
Anniversary year and investment in growth • 2018 - anniversary year for several Group companies • 30 years for VP Bank (Luxembourg) SA and 20 years for VP Fund Solutions: Commitment to Luxembourg financial centre through move to new, spacious office building with a long-term lease agreement • 30 yea
Slide 6: VP Bank (Singapore) Ltd
VP Bank (Singapore) Ltd • Asia is one of the most important growth markets for private banking • VP Bank’s successful growth strategy in Asia • As from 1 September, VP Bank will become a branch in Singapore (formerly a subsidiary) • Merchant bank license expanded to wholesale bank license • New name
Slide 7: VP Bank share price – favourable trend
VP Bank share price – favourable trend • Further strong share price gains in the first half of 2018 • Low of CHF 130.80 (January), High of CHF 194.00 (June) • 41.95% gain in the first half of 2018 (including dividend) • +52.77% outperformance over SIX banking index • +50.18% outperformance over SMI
Slide 8: Exzellent «A» Rating from Standard & Poor's
Exzellent «A» Rating from Standard & Poor's • 17 May 2018: Standard & Poor‘s upgrades VP Bank’s “A-” rating to “A” and assesses the outlook as “stable” • Justifications: 2017 net new money, operating gains, strong capitalisation, substantial financial leeway enabling investments • New rating “A/Stab
Slide 9: 2018 semi-annual results
2018 semi-annual results Siegbert Näscher · Chief Financial Officer 9
Slide 10: Overview of topics
Overview of topics •Profile as of 30 June 2018 •Income statement •Balance sheet •Client assets under management •Segments •Summary 10
Slide 11: Profile as of June 2018
Profile as of 30 June 2018 11
Slide 12: VP Bank in the first half of 2018
VP Bank in the first half of 2018 Decline in income and profit growth Group net income of CHF 29.3 million (–6.9%) Lower returns from financial investments Cost/income ratio of 70.3% (64.6%*) Operating expenses remain unchanged Good net new money performance Net new money of CHF 0.6 billion (1.1 bil
Slide 13: Income statement
Income statement 13
Slide 14: Group net income
Group net income •Slight decline in Group net income relative to the previous year •Decline in returns from financial investments, increase in operating income Group net income in CHF million Income statement in CHF million 31.5 29.3 First half of First half of First half of 2016 2017 2018 24.4 Oper
Slide 15: Interest income (in CHF million)
Interest income (in CHF million) 55.0 47.3 51.5 •Interest income from clients rose on the back of higher lending volumes; by contrast, the 12.7 14.0 20.4 interest expense increased considerably. This was due to increased client deposit volumes and higher USD interest rates. •The treasury result bene
Slide 16: Commission business and services (in CHF million)
Commission business and services (in CHF million) 61.1 64.3 •Transaction-based income increased as a result 60.7 of higher levels of client activity and the 18.1 corresponding transaction volume. 16.7 17.5 •Portfolio-based income rose further, especially as a result of increased client deposit volum
Slide 17: Operating expenses (in CHF million)
Operating expenses (in CHF million) •Personnel expense increased by 6.0%. This was 115.5 a result of growth initiatives which were in line 117.2 101.5 9.2 11.7 with our strategy. 0.7 10.4 11.3 29.9 •In this context, there was also an overall 24.4 27.8 increase of 7.6% in general and administrative e
Slide 18: Balance sheet
Balance sheet 18
Slide 19: Solid balance sheet as of June 2018 (in CHF billion)
Solid balance sheet as of 30 June 2018 (in CHF billion) 0.3 Due to banks •Client loans increased by 1.4%, especially Lombard Cash and 3.3 cash equivalents loans •Continued high level of liquid Due from banks 0.8 assets with a 26% share of total assets 10.9 Client deposits •Financial investments Clie
Slide 20: Strong balance sheet ratios
Strong balance sheet ratios 31.12.2016 31.12.2017 30.06.2018 Balance sheet total in CHF billion 11.8 12.8 12.6 Risk-weighted assets in CHF billion 3.5 3.8 4.1 Shareholders’ equity in CHF million 936.9 994.2 957.4 Core capital in CHF million 938.5 976.6 927.4 Tier 1 ratio 27.1% 25.7% 22.6% Liquidity
Slide 21: Client assets under management
Client assets under management 21
Slide 22: Increase in client assets under management (in CHF billion)
Increase in client assets under management (in CHF billion) •Positive increase of 1.5% in net new money for the first six months •The market performance was by contrast slightly negative •Client assets under management increased by 1.3% 22
Slide 23: Net new money (in CHF billion)
Net new money (in CHF billion) 1.1 •We have continually generated a positive inflow of net new money since second semester 2016. 0.8 •The recruitment of new client advisors shows 0.6 positive success. •A good inflow of net new money among existing clients was registered. 0.2 •All segments have gener
Slide 24: Segments
Segments 24
Slide 25: Segment overview as of June 2018
Segment overview as of 30 June 2018 Client Business Client Business Corporate Group Liechtenstein International Center Business volume in CHF1 31.0 billion 15.6 billion – 46.6 billion Net new money in CHF 0.3 billion 0.3 billion – 0.6 billion Pre-tax net income in CHF 54.5 million 4.7 million –26.8
Slide 26: Summary
Summary 26
Slide 27: Summary
Summary Growth in line with strategy •Client advisor recruitment campaign •Net new money Good operative performance •Increase in operating income •Further development of front-office activities and strengthening of the back office Secure and stable Bank •High level of liquid assets •Solid equity and
Slide 28: Outlook
Outlook Alfred W. Moeckli · Chief Executive Officer 28
Slide 29: Carrying momentum into the second half
Carrying momentum into the second half • Groundwork laid for further growth • Continuation of “Relationship Manager Hiring“ programme • Growing importance of the Asia business • Further development of digital services and our online products and services • Expansion of “Investment Solutions” product
Slide 30: Questions & answers
Questions & answers 30
Slide 31: Invitation for lunch
Invitation for lunch 31
Slide 32: Disclaimer
Disclaimer Although the utmost care has been taken in producing this document, we cannot warrant that the information it contains is complete, up-to-date or correct. The contents of this document are provided solely for information purposes and should not be construed as an offer, an invitation to m