Vontobel Holding Ag · SIX:VONN
Vontobel — H1 2022 Earnings Presentation
33 slides from Vontobel's earnings presentation, Jul 28, 2022
Slide 1: Vontobel half-year 2022 results
Vontobel half-year 2022 results Zeno Staub Thomas Heinzl CEO CFO July 28, 2022
Slide 2: Cautionary statement regarding forward-looking statements and disclaimer
Cautionary statement regarding forward-looking statements and disclaimer July 28, 2022 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-
Slide 3: Overview
Overview Highlights and strategic progress Financial results Outlook Q&A
Slide 4: Highlights half-year 2022
Highlights half-year 2022 July 28, 2022 – Markets entered a difficult phase of high uncertainty – Rising inflation and rates, recession fears and the war in Ukraine – Market decline across all asset classes excluding commodities – Disciplined long-term strategic execution – US expansion incl. SFA1 c
Slide 5: Key figures
Key figures July 28, 2022 Continued historically strong earnings and return on capital Assets under management Net new money CHF 209 B CHF -1.0 B (-14%) (-0.8% growth1) Operating income Pre-tax profit Group net profit CHF 686 M CHF 180 M CHF 151 M (-12%) (-23%) (-21%) Return on Equity Capital ratios
Slide 6: Long-term disciplined strategic execution, also in a period of volatility
Long-term disciplined strategic execution, also in a period of volatility July 28, 2022 Strategic priorities Highlights H1 2022 2020 – 2022 The Vontobel 1 experience − Strong investment-led, above-market, growth in Wealth Management Demonstrated capability to grow in developed markets Pure-play 2 in
Slide 7: H1 2022 environment – Global market decline and high uncertainty
H1 2022 environment – Global market decline and high uncertainty July 28, 2022 Historically large concurrent global market decline Uncertainty impacting industry flows Returns 1977 – 2022, global equities and bonds1 (%) Active European fund flows2 (CHF B) 45% 500 Global Equities 2021 0 2015 1990 201
Slide 8: Markets entered a difficult transition phase towards a "new world"
Markets entered a difficult transition phase towards a “new world” with opportunities for clients and active managers alike July 28, 2022 “The Past” “The Present” “The Future” Zero or negative rates High uncertainty Sensible Fixed Income returns Strongly correlated markets Strong inflation Normalize
Slide 9: Robust long-term performance across both Equities and Fixed Income
Robust long-term performance across both Equities and Fixed Income July 28, 2022 Track record in funds – Fixed Income: strong 3 year and 5 year % of fund assets with % of fund assets in 1st and 2nd quartiles2 rankings with 1 year decline due to 4-/5-star ratings1 higher risk positioning of flagship
Slide 10: Executing on our strategy to expand in the US
Executing on our strategy to expand in the US July 28, 2022 Significant market opportunity H1 2022 achievements Clear value proposition Market relative Vontobel WM SFA acquisition closing Geographic wealth size by region1 mix expected Q3 2022 diversification Vontobel becomes the largest Access to Vo
Slide 11: Demonstrated capability to grow in developed markets with continued solid inflows in Wealth Management
Demonstrated capability to grow in developed markets with continued solid inflows in Wealth Management July 28, 2022 NNM by client domicile Wealth Management NNM H1 2022, CHF B, % CHF B – Capability to grow in developed markets Other 4.3 – Further room for expansion, North America and Western Europe
Slide 12: Our ESG Investment Principles as a global investment firm
Our ESG Investment Principles as a global investment firm July 28, 2022 AuM in investment solutions incorporating Vontobel ESG Investment Principles ESG-criteria – SFDR framework (CHF B)1 We incorporate ESG considerations into our investment 2 processes, with the belief that over time it will enable
Slide 13: Setting the priorities for our next two year sprint towards our Lighthouse ambition
Setting the priorities for our next two year sprint towards our Lighthouse ambition July 28, 2022 2020 – 2022 2023 – 2024 Our Lighthouse ambition Investor Day November 10, 2022 – Updated strategic priorities priorities Strategic − Drive growth in an environment with inflation pressure, higher rates,
Slide 14: Financial results
Overview Highlights and strategic progress Financial results Outlook Q&A
Slide 15: H1 2022 results summary
H1 2022 results summary July 28, 2022 Key figures (CHF M) H1 2022 H2 2021 H1 2021 ∆ (%)1 ∆ CC – Decline from H1 2021 exceptional results due to Assets under management (B) 208.6 243.7 244.2 -14% lower AuM and normalized demand from Digital Net new money (B) -1.0 1.5 6.6 n.m. Investing clients Operat
Slide 16: Assets under management
Assets under management July 28, 2022 Assets under management Assets under management development (CHF B) (CHF B) +7% p.a. 244.2 243.7 243.7 1.0 0.5 208.6 34.6 208.6 186.0 193.4 168.6 146.5 AuM -14% 1H17 1H18 1H19 1H20 1H21 2H21 1H22 2H21 NNM FX Performance 1H22 16
Slide 17: AuM and NNM by Client Unit
AuM and NNM by Client Unit July 28, 2022 AuM NNM and NNM growth rate (CHF B) (CHF B, annualized growth %) -14% 6.0% 1.2% -0.8% – WM NNM generation continued strong across all key markets and 244.2 243.7 6.6 client segments 208.6 2.9 – AM NNM affected by industry AM AM challenges (gross inflows) 147.
Slide 18: Operating income
Operating income July 28, 2022 Operating income by category Operating income by Client Unit (CHF M) (CHF M) -12% – Reduction in operating income driven mainly by trading income 780 756 780 756 36 26 686 686 – Stable NII, with positive leverage 33 towards higher interest rates 291 304 247 (CHF ~70 M
Slide 19: Return on Assets
Return on Assets July 28, 2022 Asset Management Wealth Management1 (bps) (bps) – AM margin reflecting -5 bps business mix effects and 75 lower performance fees 7 70 66 8 5 – WM margin reflecting stable -4 bps recurring revenues and lower 31 23 24 transactional activity 42 42 38 Performance Other inc
Slide 20: Operating expense
Operating expense July 28, 2022 Operating expense by category Cost / income ratio2 (CHF M) (%) -7% +3.2 pp – Personnel expense declined 14% 546 72.8% 522 506 < 72% target – General expense reflecting higher 69.6% IT-related, travel and marketing expense 68.6% – Cost / income ratio above 72% target 3
Slide 21: Ongoing cost management
Ongoing cost management July 28, 2022 Operating income, 1,536 – Structural decline in cost / income adjusted 1,060 1,158 1,255 1,266 ratio over time 884 989 979 (CHF M) 766 775 849 686 – We anticipate faster economic cycles of higher amplitude, in which 2011 2012 2013 2014 2015 2016 2017 2018 2019 2
Slide 22: Capital
Capital July 28, 2022 Capital ratios (% of RWA) 25.5% – CET1 capital ratio up 190 bps to 18.5% 23.4% 7.0% ~23.0% with CET1 capital of CHF 1.2 B 20.5% 6.8% ~6.8% – RWA decreased to CHF 6.4 B, mainly AT1 6.0% due to capital efficiency measures 18.5% 16.6% ~16.2% CET1 – Leverage ratio up 10 bps to 5.0%
Slide 23: Strong long-term value creation with ROE notably above cost of equity
Strong long-term value creation with ROE notably above cost of equity2 July 28, 2022 18.8% 13.1% 14.2% 14.6% Return on equity (%) 13.0% 13.3% 12.4% 11.7%1 H1 2022 ROTE: 19.7% 11.0% ~10% 9.7% 9.2% 8.7% H1 2022 ROCET1: 26.2% 8.3% 8.4% 8.4% 8.8% 9.1% ~9% 7.5% 7.6% 7.2% 8.0% 7.4% Cost of equity2 (%) 3.0
Slide 24: Summary of business KPIs and targets
Summary of business KPIs and targets July 28, 2022 H1 2022 H1 2021 Targets Net new money growth1 -0.8% 6.0% 4% – 6% Operating income growth -12% 25% 4% – 6% Pre-tax profit growth -23% 50% – Net profit growth -21% 48% – Cost / income ratio 72.8% 69.6% < 72% Return on equity 14.6% 18.7% > 14% CET1 rat
Slide 25: Outlook
Overview Highlights and strategic progress Financial results Outlook Q&A
Slide 26: Outlook
Outlook July 28, 2022 H1 2022: We managed Current conditions may We will in H2 2022: volatility and achieved prevail for an extended – Take clients forward to navigate a higher continued satisfactory period, but a “new world” will inflation environment results as markets entered a also bring opportu
Slide 27: Q&A
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Slide 28: Appendix
Appendix
Slide 29: Upcoming events
Upcoming events July 28, 2022 9M Trading Update 2022 Investor Day 2022 November 10, 2022 incl. Strategic Priorities 2023 – 2024 Full-year results 2022 February 9, 2023 incl. publication of the Annual Report 2022 Annual General Meeting 2023 April 4, 2023 Refer to the Vontobel Investor Relations websi
Slide 30: Summary of FX impacts and one-offs
Summary of FX impacts and one-offs July 28, 2022 Profit before tax (CHF M) -23% reported − Minimal FX impact on earnings as stronger USD offset weaker -26% EUR and GBP underlying 9.1 242.5 233.4 − Refer to the Business Review -62.0 section of the Half-year report 180.5 -0.1 - 180.4 2022 for an overv
Slide 31: AuM by asset class and ESG criteria per SFDR framework
AuM by asset class and ESG criteria per SFDR framework July 28, 2022 AuM by asset class AuM in investment solutions incorporating (CHF B) ESG-criteria – SFDR framework3 Other1 (CHF B) 2% Equity 209 209 2 20% 4 25 Other 88 118 Multi 16 assets Asset 86 53 20 58% 66 23 SFDR Fixed 120 86 12 23 Income ca
Slide 32: AuM by client domicile and mandate type
AuM by client domicile and mandate type July 28, 2022 AuM by client domicile AuM by mandate type (H1 2022, % of total AuM) (H1 2022, % of total AuM) Execution / Other custody Collective investments / APAC / EM 9% 14% funds 23% 13% Switzerland Advisory 43% mandates 17% North 7% America1 7% Italy 10%
Slide 33: Shareholder structure
Shareholder structure1 July 28, 2022 Vontobel families hold more than 50% of the share capital and are strongly committed to Vontobel Vontobel Foundation and Pellegrinus Holding 19.6% Pooled Shares in the core Free float shares total pooling agreement 49.1% Vontrust AG 50.9% 44.5% 14.3% Advontes AG