Vp Bank Ag Class A · SIX:VPBN
Vp Bank Ag Class A — H1 2021 Earnings Presentation
30 slides from Vp Bank Ag Class A's earnings presentation, Aug 17, 2021
Slide 1: Semi-annual conference 2021
VP Bank Group · 17 August 2021 Semi-annual conference 2021 1
Slide 2: Programme
Programme Welcome Dr Thomas R. Meier, Chairman of the Board of Directors VP Bank Group 2021 semi-annual results Roger Barmettler, Chief Financial Officer Vision 2026 Paul Arni, Chief Executive Officer Review and outlook Paul Arni, Chief Executive Officer Q&A 2
Slide 3: Data points us in the right direction. Human foresight shows us the way.
Data points us in the right direction. Human foresight shows us the way. 3
Slide 4: Review of capital market yields and equity markets
Review of capital market yields and equity markets 10-year capital market yields: lower for longer Equity markets made up for previous price losses 2.0% 150 140 1.5% 130 1.0% 120 110 0.5% 100 0.0% 90 80 -0.5% 70 -1.0% 60 01.20 06.20 12.20 06.21 01.20 06.20 12.20 06.21 CHF EUR USD JPY SPI Euro Stoxx
Slide 5: Good semi-annual results, solid capital base
Good semi-annual results, solid capital base Commission Tier 1 ratio income 20.8% CHF 78.0 million 20.8% (end of 2020) CHF 71.5 million Very good (1st half of 2020) equity base Strong increase Net new money Group net inflow Extremely stable income Rating: CHF 0.7 billion key balance CHF 29.9 million
Slide 6: Income statement
Income statement 6
Slide 7: Increase in commission income
Increase in commission income Operating income (in CHF million) • Commission income: up CHF 6.5 million, or 9.1% 166.8 166.6 • Significantly increased, recurring corporate 162.7 5.4 8.5 earnings (CHF 7.4 million) as a result of greater 11.8 client assets under management (AuM) 32.5 24.1 29.3 • Inter
Slide 8: Strategic investments and the acquisition of Öhman
Strategic investments and the acquisition of Öhman Operating expenses (in CHF million) 146.2 • Strategic investments 132.2 • Personnel expense: up CHF 4.7 million, or 5.8% 122.7 21.7 15.5 • General and administrative expenses: up CHF 2.0 14.3 14.2 31.0 million, or 6.9% 29.3 29.0 • Valuation adjustme
Slide 9: Balance sheet
Balance sheet 9
Slide 10: Solid balance sheet structure
Solid balance sheet structure Balance sheet as of 30 June 2021 (in CHF billion) 0.2 Due to banks • Stable assets Cash and cash equivalents 2.4 • High level of liquid assets • Growth in client loans of 3.8% 1.6 Due from banks • Stable refinancing Client deposits • Client deposits: 87% of total assets
Slide 11: Capital adequacy requirements well exceeded
Capital adequacy requirements well exceeded 31.12.2019 31.12.2020 30.06.2021 Risk-weighted assets in CHF billion 4.8 4.7 4.7 Core capital (CET 1) in CHF million 979.0 972.8 977.3 Tier 1 ratio (CET 1 ratio) 20.2% 20.8% 20.8% Liquidity coverage ratio (LCR) 213.0% 179.4% 153.4% Leverage ratio 7.1% 7.1%
Slide 12: Client assets under management
Client assets under management 12
Slide 13: Increase in client assets under management
Increase in client assets under management Assets under management (in CHF billion) • Increase in client assets under management of 10.8% • Increase in net new money: CHF 0.7 billion • Client assets including custody assets: CHF 60.8 billion 13
Slide 14: Segments
Segments 14
Slide 15: Broad-based
Broad-based Segment overview as of 30 June 2021 Intermediaries & Corporate Client Solutions Group Private Banking Center Business volume in CHF1 45.0 billion 14.0 billion – 59.0 billion Client assets under management in 39.8 billion 12.7 billion – 52.6 billion CHF Net new money in CHF 0.3 billion 0.
Slide 16: Summary
Summary 16
Slide 17: Summary
Summary Significantly increased Group net income • Solid half-year results • Strong increase in commission income • Net new money inflows from both business segments Secure and stable Bank • High level of liquid assets • Solid equity and strong tier 1 ratio • Excellent “A” rating from Standard & Poo
Slide 18: Opportunities don't just come about
Opportunities don’t just come about. They are the result of the right analysis at the right time. 18
Slide 19: Our vision: international Open Wealth Service pioneer
Our vision VP Bank becomes an international Open Wealth Service pioneer. 19
Slide 20: We need to change the way we think about wealth management
We need to change the way we think about wealth management 20
Slide 21: New trends emerge all the time
New trends emerge all the time. Turning them into investment opportunities is the real trick. 21
Slide 22: Review – organisational robustness and technical set-up
Review – organisational robustness and technical set-up Collaboration agreement New members of the Group and participation in IPO of Executive Management Hywin Wealth introduced Strategy 2026 Pamela Hsu adopted First sustainability report published Phua starts as VP Bank according to GRI standard CE
Slide 23: Serving clients in 17 target markets across 6 strategic locations
Serving clients in 17 target markets across 6 strategic locations VP Client Solutions Luxembourg Liechtenstein Creating systematic A strong home market with The competence centre for a significant universal access to new investment fund solutions and the EU opportunities in the banking business, the
Slide 24: ESG integration in the investment offering
Consistent inclusion of sustainability ESG integration in the investment offering Impact Discretionary investing Investment and advisory solutions products offering Achieving the Investment process sustainability plan: “AA” MSCI ESG rating and CO2 neutrality Implementation of EU Action Plan requirem
Slide 25: VP Client Solutions – curator of private market investments
VP Client Solutions – curator of private market investments II III I Modular, open-architecture access and structuring platform (ORBIT core) for private market investments I II The growing ORBIT ecosystem connects proprietary investment and structuring solutions with innovative, co-created partner o
Slide 26: Outlook – definition of a clear set of measures
Outlook – definition of a clear set of measures Collaboration Pamela Hsu agreement and Sustainability Plus Asia strategy Phua starts as participation in IPO of mandate further CEO of VP Bank Hywin Wealth introduced developed Asia First sustainability Start of the new report published Chief Transform
Slide 27: Financial targets 2026: increase in Group net income to CHF 100 million
Financial targets 2026: increase in Group net income to CHF 100 million Growth Profitability Stability Net new money Profit Cost / Tier 1 (in % AuM) margin income ratio (in bp of AuM) ratio2 >4% p.a.1 >15 bp 70% >20% 1 Over the 2021–2026 cycle. 27 2 Operating expenses / operating income.
Slide 28: Q&A
Q&A 28
Slide 29: yw BANK
yw BANK
Slide 30: Disclaimer
Disclaimer Although this document was prepared with the greatest possible care, we do not assume any liability that the information contained is complete, up to date or accurate. The information in this document is for information purposes only and should not be construed as an offer or an invitatio