Vontobel Holding Ag · SIX:VONN
Vontobel — FY2023 Earnings Presentation
30 slides from Vontobel's earnings presentation, Feb 8, 2024
Slide 1: Full-year 2023 results
Christel Rendu de Lint Co-CEO Georg Schubiger Co-CEO Thomas Heinzl CFO Full-year 2023 results February 8, 2024
Slide 2: Cautionary statement regarding forward-looking statements and disclaimer
Cautionary statement regarding forward-looking statements and disclaimer This document may contain projections or other forward-looking statements related to Vontobel that are subject to known and unknown risks, uncertainties, and other important factors. These projections and forward-looking statem
Slide 3: Agenda
Agenda Highlights Financial Q&A and strategy performance Christel Rendu de Lint Thomas Heinzl Georg Schubiger CFO Co-CEOs 3
Slide 4: 2023 – A mixed market backdrop
2023 – A mixed market backdrop US and Emerging markets equities US bond yields US Dollar and Swiss Franc S&P 500, MSCI EM, Indexed 2Y and 10Y government bond yields, % Nominal broad effective exchange rates, Indexed Peak Peak hawkishness 140 6.0% Peak 5.0% 110 hawkishness (October) hawkishness (Octo
Slide 5: Solid 2023 results and beginning 2024 with a clear way forward
Solid 2023 results and beginning 2024 with a clear way forward 2023 2024 Full-year results Sharpen, accelerate & anticipate PBT robust (CHF 263 M) with good Sharpen distribution around two client segments: momentum in our private clients business Private and Institutional AuM stable (CHF 207 B) on i
Slide 6: One Vontobel – Investment-led and client-centric
One Vontobel – Investment-led and client-centric Institutional Clients Sovereign wealth funds Pension funds Insurance companies Banks and other intermediary Investment distribution partners Solutions External asset managers and other B2B(2C) partners Ultra-high net worth clients and family offices P
Slide 7: Private clients – Strong momentum with a platform for continued growth
Private clients – Strong momentum with a platform for continued growth Strong momentum Key success factors Platform for continued growth Operating income, CHF M AuM (CHF B, CHF M) and RMs (FTE) +8% 97 901 − Investment-led approach 96 93 832 (not credit-led) 154 358 82 186 − More than 90% of AuM AuM
Slide 8: Institutional clients – Fairly stable asset base and positioned for recovery
Institutional clients – Fairly stable asset base and positioned for recovery Assets under management development Foundations for recovery CHF B −4% 107 103 − Well placed to benefit from an industry recovery 36 35 − Large majority of flagship funds well ranked 38 − More work to do on emerging markets
Slide 9: Investments – Provides an institutional-caliber offering to all clients of Vontobel
Investments – Provides an institutional-caliber offering to all clients of Vontobel Our investment DNA Active offering across all asset classes Investment performance % of assets in 1st and 2nd quartiles1,2 93 93 86 − Resolutely active 78 70 61 − Highly experienced 56 teams of specialists 30 − Deliv
Slide 10: Infrastructure – an attractive asset class
Investments – The Ancala transaction is a milestone in our private markets strategy Infrastructure – an attractive asset class 2.5 +16% − One of the fastest growing segments of private markets +10% 1.2 − Growth supported by macro tailwinds 0.7 − Stable, uncorrelated and inflation-protected cash yiel
Slide 11: Ancala – a successful manager
Investments – The Ancala transaction is a milestone in our private markets strategy Ancala – Clear value proposition a successful manager − Highly experienced, solid long-term track record − Transaction financed out of Vontobel excess capital − Focused on critical mid-market infrastructure − Accreti
Slide 12: Cost – Further cost reduction will be implemented to reach our cost / income target
Cost – Further cost reduction will be implemented to reach our cost / income target Cost / income ratio Adjusted, % 78.5% Free up resources for growth by launching additional CHF 100 M cost measures by end 2026 75.0% < 72% target − Retain strategic flexibility − Drive long-term value creation − Rele
Slide 13: Acceleration of our strategic execution supports our unchanged targets
Acceleration of our strategic execution supports our unchanged targets Ø 3Y 2023 Target1 Growth Operating income growth 2.2% 1.5% 4% – 6% Net new money growth 0.3% –0.7% 4% – 6% Incl. market focus2: Ø 3Y (–0.1%), FY23 (–1.7%) Sharpen Profitability Return on equity 13.5% 10.5% > 14% C/I ratio, adjust
Slide 14: Financial results
Financial results
Slide 15: Good underlying operating performance
Good underlying operating performance Highlights IFRS Net income development CHF M − Good underlying operating performance − IFRS net income reflects investments into 25 39 future WM growth, and headwinds from 230 16 FX and taxes 2 11 215 − Overall solid results in a challenging environment for acti
Slide 16: AuM growth and improved NNM
AuM growth and improved NNM Highlights Assets under management development NNM composition2 CHF B CHF B − AUM up by 1% as +1% performance more than 15.3 Total −5.2 −1.4 204.4 206.8 offset FX movements −3.3 −1.4 −8.2 − Improved NNM trend AM 107.2 103.3 WM 5.4 5.3 − NNM improvement driven by Instituti
Slide 17: Operating income growth
Operating income growth Highlights Operating income by category Operating income CHF M CHF M − Operating income up 2% on net interest income and WM 2% inflows 1,285 1,305 1,285 1,305 Net Interest 101 − Strong WM revenue growth due 180 +78% Income 384 –16% to positive NNM and higher AM 457 interest r
Slide 18: Gross margin (Return on assets) picture mixed
Gross margin (Return on assets) picture mixed Highlights Asset Management Wealth Management2 bps bps − WM margin up on net interest income improvement +7 bps 78 − AM margin decline driven by 71 business mix, mostly on 21 Emerging Markets flows –1 bps Interest income 13 Performance 37 36 fees1 Commis
Slide 19: Successful cost reduction and investments in future WM growth
Successful cost reduction and investments in future WM growth Highlights Operating expenses Realized target exit-rate savings CHF M CHF M − Over-achieved CHF 65 M exit-rate savings 2% 1,042 1,018 1,042 21 − Operating expenses up 2% due to 1,018 – 30 34 investment in future WM growth 18 SFA2 and acco
Slide 20: Strong capital position and continued conservative risk profile
Strong capital position and continued conservative risk profile Highlights Basel III capital ratios % of RWA − Further strengthening of balance sheet 23.8% 23.8% − Total capital ratio of 23.8%, year-end LCR of 264% and 7.1% 5.1% 21.0% leverage ratio at 5.4% AT1 5.0% 18.7% − CET1 ratio significantly
Slide 21: Continued track record of value and capital creation
Continued track record of value and capital creation Strong track record Book value development − Value creation since 2014, dividend since 2011 − Significant capital generation and shareholder distributions − ROE of 10.5% and RoCET1 of 18.7% − TBVPS incl. dividends more than 140% since 2011 Return
Slide 22: Financial results summary – good underlying operating performance
Financial results summary – good underlying operating performance Highlights Key figures (CHF M) 2023 2022 ∆ (%) Assets under Management (B) 207 204 +1% Net New Money (B) −1.41 −5.2 − Good underlying operating performance and step up of cost reduction Operating income 1,305 1,285 +2% Operating expen
Slide 23: Key messages
Key messages
Slide 24: Solid 2023 results and beginning 2024 with a clear way forward
Solid 2023 results and beginning 2024 with a clear way forward 2023 2024 Full-year results Sharpen, accelerate & anticipate PBT robust (CHF 263 M) with good Sharpen distribution around two client segments: momentum in our private clients business Private and Institutional AuM stable (CHF 207 B) on i
Slide 25: Q&A
Q&A
Slide 26: Appendix
Appendix
Slide 27: Upcoming events
Upcoming events Annual General Meeting 2024 April 09, 2024 3M Trading Update 2024 April 25, 2024 Half-year results 2024 July 26, 2024 Refer to the Vontobel Investor Relations website for details: www.vontobel.com/calendar 27
Slide 28: Ancala transaction – Clear value for Vontobel shareholders
Ancala transaction – Clear value for Vontobel shareholders Consideration - All cash consideration to be paid at closing, funded by Vontobel excess capital - Vontobel retains an ample buffer above it’s capital targets (~16% pro-forma 31.12.23 CET1 vs. Vontobel 12% CET1 target) Retention - The Ancala
Slide 29: Integrating our six Sustainability Commitments into our business model
Integrating our six Sustainability Commitments into our business model Progress on our six Sustainability Commitments AuM incorporating ESG-criteria SFDR framework Governance & Transparency (CHF B)2 Sharpened existing group sustainability governance 2 Investment Solutions ESG criteria included in pe
Slide 30: Shareholder structure
Shareholder structure Vontobel families hold more than 50% of the share capital and are strongly committed to Vontobel Advontes AG 10.6% Vontrust AG 14.3% Shares in the Free float1 pooling agreement 49.1% 50.9% Vontobel Foundation 14.9% Pellegrinus Holding AG 4.7% Further shares of a family member 6