Vp Bank Ag Class A · SIX:VPBN
Vp Bank Ag Class A — FY2016 Earnings Presentation
50 slides from Vp Bank Ag Class A's earnings presentation, Mar 7, 2017
Slide 1: VP Bank Group 2016 annual results
VP Bank Group 07 March 2017 VP Bank Group 2016 annual results 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 2016 annual results 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: 2016 annual results
2016 annual results 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
Profile 7
Slide 8: VP Bank in 2016 (1/2)
VP Bank in 2016 (1/2) Strong adjusted Group net income (+90%) • Revenue increase in a challenging market Group net income environment CHF 58 million • Cost decreases following implementation of further synergies from fusion with Centrum Bank Significant improvement of the inflow of net new money • H
Slide 9: VP Bank in 2016 (2/2)
VP Bank in 2016 (2/2) • Risk-weighted assets significantly reduced and liquidity strengthened • Additional share buyback programme launched • Excellent Standard & Poor’s rating – high security and stability Tier 1 ratio Conversion of bearer 27.1% shares into registered shares A Standard & Shareholde
Slide 10: Income statement
Income statement 10
Slide 11: Adjusted Group net income rises significantly
Adjusted Group net income rises significantly in CHF million 64.1 • Significant improvement in 58.0 One-off effect adjusted Group net income owing to over the last three years fusion with Centrum Bank • Increase in revenues and IAS 19 • Active cost management 30.6 • Increase of 90% in 2016 20.0 2014
Slide 12: Income statement
Income statement in CHF million 2014 2015 2016 Operating income 222.7 306.6 273.2 Operating expenses –202.1 –246.4 –212.2 Taxes –0.6 3.9 –3.0 Group net income 20.0 64.1 58.0 12
Slide 13: Interest business
Interest business in CHF million 102.4 88.4 27.6 • Volume increase in client 65.6 24.5 lending and expansion of 20.4 margins • Negative interest rate and decrease in client deposits 72.1 76.6 61.2 • Active treasury management and optimisation of risk/return profile –8.2 of the balance sheet –16.0 –1
Slide 14: Commission business and services
Commission business and services in CHF million 126.4 118.4 118.8 • Volatile financial markets 35.9 and client uncertainty 36.7 33.2 • Restrained transaction volume 90.5 85.6 81.7 2014 2015 2016 Transaction-based income Portfolio-based income 14
Slide 15: Operating expenses
Operating expenses in CHF million 246.4 212.2 202.0 26.0 • No further integration costs 2.8 7.4 38.3 22.4 in connection with the 29.3 merger with Centrum Bank 51.7 60.2 • Cost reduction as a result 46.8 of using synergies • Expansion of front-office activities 135.3 118.5 121.9 2014 2015 2016 Person
Slide 16: Balance sheet
Balance sheet 16
Slide 17: Sound balance sheet as at December 2016
Sound balance sheet as at 31 December 2016 in CHF billion 0.4 Due to banks Cash and cash equivalents 3.5 • Reduction of balance sheet Due from banks 0.7 total • Increase in client lending 10.1 Client deposits • High level of liquid assets Client loans 5.2 and significant decrease in amounts due from
Slide 18: Sound balance sheet and strong balance sheet ratios
Sound balance sheet and strong balance sheet ratios 31.12.2014 31.12.2015 31.12.2016 Balance sheet total in CHF billion 11.2 12.4 11.8 Risk-weighted assets in CHF billion 4.2 3.7 3.5 Equity in CHF million 868.5 918.1 936.9 Core capital1 in CHF million 860.5 911.2 938.5 Tier 1 ratio1 20.5% 24.4% 27.1
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 • Positive development of inflow of net new money • Significant inflows in Asia • Outflows in Europe due to regulatory environment • Decline in client deposits in the balance sheet had a partially negative effect on the inflow of net new mone
Slide 21: Minimal changes in asset classes / currencies
Minimal changes in asset classes / currencies 2014 2015 2016 3% 3% 3% Asset classes 29 % 25 % 32 % 27 % 30 % 27 % Liquidity Bonds Equities Funds 20 % 20 % Other 20 % 20 % 20 % 21 % 2014 2015 2016 13 % 13 % 13 % 26 % Currencies 26 % 26 % CHF EUR USD 33 % 27 % 31 % Other 30 % 28 % 34 % 21
Slide 22: Segments
Segments 22
Slide 23: Segment overview as of December 2016
Segment overview as of 31 December 2016 Client Client Corporate Business Business Group Center Liechtenstein International Business volume in CHF1 28.9 billion 12.1 billion – 41.0 billion Net new money in CHF –0.2 billion 0.2 billion – 0.0 billion –35.8 Pre-tax net income in CHF 94.7 million 2.3 mil
Slide 24: Dividends
Dividends 24
Slide 25: Dividends
Dividends Dividends in CHF Payout ratio Dividend yield 4.51 4.9% 4.0 87.9% 4.2%1 3.0 3.5% 46.8%1 39.9% 2014 2015 2016 2014 2015 2016 2014 2015 2016 1 Proposal to the annual general meeting. 25
Slide 26: Summary
Summary 26
Slide 27: VP Bank Group – summary
VP Bank Group – summary Growth in line with strategy • Good inflow of new money in our growth markets Strong operative performance • Increase in revenues • Reduction of costs as a result of using synergies Secure and stable Bank • High level of liquid assets • Solid equity and strong tier 1 ratio •
Slide 28: Strategy implementation
Strategy implementation Alfred W. Moeckli Chief Executive Officer
Slide 29: Reported cumulative net profit over three years
Reported cumulative net profit over three years Period Cumulative net profit over three years in CHF 2010 to 2012 65.5 million 2011 to 2013 89.1 million 2012 to 2014 105.9 million 2013 to 2015 122.8 million 2014 to 2016 142.1 million 29
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 Focus Growth Culture 3 Internationalisation 1 Maximising 4 Expanding the 9 Consolidating the savings potential client advisor group sales and 5 Strengthening performance culture intermediary position 2 Optimising the 10 Promoting the 6 Strengthening range of products private banki
Slide 32: Key issues in 2016
Key issues in 2016 Focus Growth Culture 3 Internationalisation 1 Maximising 4 Expanding the 9 Consolidating the savings potential client advisor group sales and 5 Strengthening performance culture intermediary position 2 Optimising the 10 Promoting the 6 Strengthening range of products private banki
Slide 33: Key issues in 2016
Key issues in 2016 Focus Growth Culture 3 Internationalisation 1 Maximising 4 Expanding the 9 Consolidating the savings potential client advisor group sales and 5 Strengthening performance culture intermediary position 2 Optimising the 10 Promoting the 6 Strengthening range of products private banki
Slide 34: Internationalisation
Internationalisation Switzerland • Key target market, also for developing Germany and Asia Eastern Europe • Greatest potential for growth • Increased marketing activities • Considerable inflows of new money in Germany • Boutique concept • Focused recruitment of new • Growth by recommendation client
Slide 35: Key issues in 2016
Key issues in 2016 Focus Growth Culture 3 Internationalisation 1 Maximising 4 Expanding the 9 Consolidating the savings potential client advisor group sales and 5 Strengthening performance culture intermediary position 2 Optimising the 10 Promoting the 6 Strengthening range of products private banki
Slide 36: “Relationship Manager Hiring” project
“Relationship Manager Hiring” project Assistance from Overall, well-established local around 75 executive client advisors search over the next companies three years Half of the new client advisors First in Asia, the rest promising in Switzerland, client advisors Liechtenstein and already recruited L
Slide 37: Key issues in 2016
Key issues in 2016 Focus Growth Culture 3 Internationalisation 1 Maximising 4 Expanding the 9 Consolidating the savings potential client advisor group sales and 5 Strengthening performance culture intermediary position 2 Optimising the 10 Promoting the 6 Strengthening range of products private banki
Slide 38: Focus on the intermediaries’ requirements
Focus on the intermediaries’ requirements Differentiated personal offering Segmentation ProLink – the new information New platform for comprehensive intermediaries advisory concept by Key Account Management 38
Slide 39: Key issues in 2016
Key issues in 2016 Focus Growth Culture 3 Internationalisation 1 Maximising 4 Expanding the 9 Consolidating the savings potential client advisor group sales and 5 Strengthening performance culture intermediary position 2 Optimising the 10 Promoting the 6 Strengthening range of products private banki
Slide 40: Strengthening the private banking segment
Strengthening the private banking segment Leverage points: quality of advisory services and offering Advisory clients UHNWI • Consistent first-class • Complex needs call for quality of advisory interdisciplinary services throughout solutions the Group • Systematic bundling • Realistic service promis
Slide 41: Key issues in 2016
Key issues in 2016 Focus Growth Culture 3 Internationalisation 1 Maximising 4 Expanding the 9 Consolidating the savings potential client advisor group sales and 5 Strengthening performance culture intermediary position 2 Optimising the 10 Promoting the 6 Strengthening range of products private banki
Slide 42: Going digital – its significance for VP Bank
Going digital – its significance for VP Bank 42
Slide 43: Digitisation programme Next
Digitisation programme Next Phase 1 Phase 2 Modernising Targeted investment existing in systems and data, online expansion of online services service offering 43
Slide 44: Key issues in 2016
Key issues in 2016 Focus Growth Culture 3 Internationalisation 1 Maximising 4 Expanding the 9 Consolidating the savings potential client advisor group sales and 5 Strengthening performance culture intermediary position 2 Optimising the 10 Promoting the 6 Strengthening range of products private banki
Slide 45: Use of acquisition opportunities
Use of acquisition opportunities Acquisition of selected portfolios and Sufficient advisory teams Between shareholders’ CHF 5 and 25 billion equity in client assets available under management Cultural fit essential 45
Slide 46: Key issues in 2016
Key issues in 2016 Focus Growth Culture 3 Internationalisation 1 Maximising 4 Expanding the 9 Consolidating the savings potential client advisor group sales and 5 Strengthening performance culture intermediary position 2 Optimising the 10 Promoting the 6 Strengthening range of products private banki
Slide 47: Key issues in 2016
Key issues in 2016 Focus Growth Culture 3 Internationalisation 1 Maximising 4 Expanding the 9 Consolidating the savings potential client advisor group sales and 5 Strengthening performance culture intermediary position 2 Optimising the 10 Promoting the 6 Strengthening range of products private banki
Slide 48: Culture-strengthening measures
Culture-strengthening measures Noticeably Developing measures improved from the employee survey Leadership working • Involving employees seminars atmosphere • Teamwork within the company • Structures and processes • Knowledge transfer Idea and innovation 35 ideas management submitted Promoting myCon
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: BANK
BANK Safely ahead.