Vp Bank Ag Class A · SIX:VPBN
Vp Bank Ag Class A — H1 2017 Earnings Presentation
40 slides from Vp Bank Ag Class A's earnings presentation, Aug 22, 2017
Slide 1: 2017 semi-annual results
Park Hyatt, Zurich · 22 August 2017 2017 semi-annual results
Slide 2: Programme
Programme •Welcome Fredy Vogt, Chairman of the Board of Directors •2017 semi-annual results Siegbert Näscher, Chief Financial Officer •Strategy implementation Alfred W. Moeckli, Chief Executive Officer •Questions and answers 2017 semi-annual results · 22 August 2017 · P. 3
Slide 3: Welcome
Welcome Fredy Vogt · Chairman of the Board of Directors
Slide 4: 2017 semi-annual results
2017 semi-annual results Siegbert Näscher · Chief Financial Officer
Slide 5: Overview of topics
Overview of topics •Profile as of 30 June 2017 •Income statement •Balance sheet •Client assets under management •Segments •Summary Presentation · Alfred W. Moeckli · 21 April 2017 · P. 6
Slide 6: Profile as of June 2017
Profile as of 30 June 2017
Slide 7: VP Bank in the first half of 2017
VP Bank in the first half of 2017 Strong income and profit growth billion Group net •42.9 income of CHF 31.5 million (+28.8%) Increase in all sources of revenue Cost/income ratio of 64.6% (68.9%*) Increase in costs resulting from agreement with authorities in North Rhine-Westphalia (NRW) Excellent i
Slide 8: Income statement
Income statement
Slide 9: Adjusted Group net income rises
Adjusted Group net income rises •Significant improvement in Group net income over the last three years •Up 74% in first semester of 2017 after adjustment for NRW Group net income in CHF million Income statement in CHF million 40.9 First half of First half of First half of 31.5 2015 2016 2017 1 24.4
Slide 10: Interest income (in CHF million)
Interest income (in CHF million) 47.3 51.5 •Volume increase in client lending 42.4 and financial investments 12.7 14.0 11.6 •Decline in client deposits •Active treasury management 35.2 38.0 37.9 -4.4 -3.4 -0.4 First half of 2015 First half of 2016 First half of 2017 Clients Treasury Interest rate he
Slide 11: Commission business and services (in CHF million)
Commission business and services (in CHF million) 65.9 •Increase in client activity 60.7 61.1 •Friendly market environment 19.4 16.7 17.5 •Stable portfolio-based income 46.5 44.0 43.6 First half of 2015 First half of 2016 First half of 2017 Portfolio-based income Transaction-based income 2017 semi-a
Slide 12: Operating expenses (in CHF million)
Operating expenses (in CHF million) 133.3 •Provisions for the agreement with the 17.4 101.5 117.2 authorities in North Rhine-Westphalia 9.2 •Client advisor growth initiatives and recruitment 19.1 0.7 10.4 campaign 11.3 29.6 27.8 •Digitisation 24.4 •Brand renewal 67.2 65.0 69.9 First half of 2015 Fir
Slide 13: Balance sheet
Balance sheet
Slide 14: Solid balance sheet as of June 2017 (in CHF billion)
Solid balance sheet as of 30 June 2017 (in CHF billion) 0.7 Due to banks •Slight increase in balance sheet total Cash and 3.2 cash equivalents •Increase in client lending Due from banks 0.8 •High level of liquid assets •Decline in client deposits 9.9 Client deposits •Slight increase in risk- Client
Slide 15: Strong balance sheet ratios
Strong balance sheet ratios 31.12.2015 31.12.2016 30.06.2017 Balance sheet total in CHF billion 12.4 11.8 12.0 Risk-weighted assets in CHF billion 3.7 3.5 3.6 Equity in CHF million 918.1 936.9 942.3 Core capital in CHF million 911.2 938.5 937.0 Tier 1 ratio 24.4% 27.1% 25.9% Leverage ratio1 7.0% 7.8
Slide 16: Client assets under management
Client assets under management
Slide 17: Increase in client assets under management (in CHF billion)
Increase in client assets under management (in CHF billion) •Increase in client assets under management •Positive development of inflow of net new money and performance •Expansion of fund business 2017 semi-annual results · 22 August 2017 · P. 18
Slide 18: Net new money (in CHF billion)
Net new money (in CHF billion) •Continuous improvement in inflow of net new money over the last three years 1.1 •All locations have made a positive contribution -0.2 •Significant inflows in fund services and at -0.5 international locations First half of 2015 First half of 2016 First half of 2017 •Re
Slide 19: Segments
Segments
Slide 20: Segment overview as of June 2017
Segment overview as of 30 June 2017 Client Business Client Business Corporate Group Liechtenstein International Center Business volume in CHF1 29.1 billion 13.8 billion – 42.9 billion Net new money in CHF 0.0 billion 1.1 billion – 1.1 billion Pre-tax net income in CHF 54.7 million 5.4 million –26.1
Slide 21: Summary
Summary
Slide 22: Summary
Summary Growth in line with strategy •Client advisor recruitment campaign •Inflow of net new money at all locations Strong operative performance •Increase in revenues •Further development of front-office activities Secure and stable Bank •High level of liquid assets •Solid equity and strong tier 1 r
Slide 23: Strategy implementation
Strategy implementation Alfred W. Moeckli · Chief Executive Officer
Slide 24: Key issues in 2017
Key issues in 2017 Focus Growth Culture 1 New investment 3 Internationalisation 6 Employee survey 2017 advisory solutions • Switzerland location • VP Fund Solutions Leadership training courses Digitisation programme 7 2 and VP Bank journeys Next 4 Expanding the client advisor group Brand launch even
Slide 25: Key issues in 2017
Key issues in 2017 Focus Growth Culture 1 New investment 3 Internationalisation 6 Employee survey 2017 advisory solutions • Switzerland location • VP Fund Solutions Leadership training courses Digitisation programme 7 2 and VP Bank journeys Next 4 Expanding the client advisor group Brand launch even
Slide 26: New investment advisory solutions
New investment advisory solutions •Optimised advisory process launched in all relevant units Advisory •Great deal of interest in the three new process investment advisory packages •New investment advisory software successfully implemented Offering Digital support 2017 semi-annual results · 22 August
Slide 27: Key issues in 2017
Key issues in 2017 Focus Growth Culture 1 New investment 3 Internationalisation 6 Employee survey 2017 advisory solutions • Switzerland location • VP Fund Solutions Leadership training courses Digitisation programme 7 2 and VP Bank journeys Next 4 Expanding the client advisor group Brand launch even
Slide 28: Digitisation programme Next
Digitisation programme Next Hybrid advisory model Implementation phase 1 •Complete redesign of website Supporting tools Innovative ... tools •Integration of ProLink information platform for intermediaries •Integration of optimised e-banking in portal solution from start of 2018 CA Client •Optimisati
Slide 29: Key issues in 2017
Key issues in 2017 Focus Growth Culture 1 New investment 3 Internationalisation 6 Employee survey 2017 advisory solutions • Switzerland location • VP Fund Solutions Leadership training courses Digitisation programme 7 2 and VP Bank journeys Next 4 Expanding the client advisor group Brand launch even
Slide 30: Internationalisation – Switzerland location
Internationalisation – Switzerland location •New member of the Executive Board: Maximilian Barth •Successful conversion to powerful sales organisation •Positive development of net new money •Promising recruitment of new client advisors •Relocation to ultra-modern building 2017 semi-annual results ·
Slide 31: New premises for VP Bank (Switzerland) Ltd
New premises for VP Bank (Switzerland) Ltd 2017 semi-annual results · 22 August 2017 · P. 32
Slide 32: Internationalisation – VP Fund Solutions
Internationalisation – VP Fund Solutions •Fund business as an attractive growth segment •Fund strategy driven forward with success •One-stop shop as sales argument •Positive development of assets under management •Great deal of interest in reserved alternative investment fund (RAIF) 2017 semi-annual
Slide 33: Key issues in 2017
Key issues in 2017 Focus Growth Culture 1 New investment 3 Internationalisation 6 Employee survey 2017 advisory solutions • Switzerland location • VP Fund Solutions Leadership training courses Digitisation programme 7 2 and VP Bank journeys Next 4 Expanding the client advisor group Brand launch even
Slide 34: Expanding the client advisor group – client advisor hiring project
Expanding the client advisor group – client advisor hiring project Approx. 75 client advisors to be hired 17 client advisors by end of 2019 already hired VP Bank as an attractive Initial inflows employer of net new money 2017 semi-annual results · 22 August 2017 · P. 35
Slide 35: Key issues in 2017
Key issues in 2017 Focus Growth Culture 1 New investment 3 Internationalisation 6 Employee survey 2017 advisory solutions • Switzerland location • VP Fund Solutions Leadership training courses Digitisation programme 7 2 and VP Bank journeys Next 4 Expanding the client advisor group Brand launch even
Slide 36: Targeted use of acquisition opportunities
Targeted use of acquisition opportunities Ongoing review Comfortably able of acquisition to take over up to opportunities CHF 25 billion in client assets under management Cultural fit Excellent essential equity base 2017 semi-annual results · 22 August 2017 · P. 37
Slide 37: Key issues in 2017
Key issues in 2017 Focus Growth Culture 1 New investment 3 Internationalisation 6 Employee survey 2017 advisory solutions • Switzerland location • VP Fund Solutions Leadership training courses Digitisation programme 7 2 and VP Bank journeys Next 4 Expanding the client advisor group Brand launch even
Slide 38: Culture – numerous initiatives and measures
Culture – numerous initiatives and measures Further Group-wide Positive feedback employee survey in on leadership Successful September seminars brand launch event Lightning surveys Intensive reflect improved networking at working atmosphere VP Bank Journey 2017 semi-annual results · 22 August 2017 ·
Slide 39: Questions and answers
Questions and answers
Slide 40: Thank you
Thank you