Vontobel Holding Ag · SIX:VONN
Vontobel — H1 2024 Earnings Presentation
26 slides from Vontobel's earnings presentation, Jul 26, 2024
Slide 1: Half-year 2024 results
Christel Rendu de Lint Co-CEO Georg Schubiger Co-CEO Thomas Heinzl CFO Half-year 2024 results July 26, 2024
Slide 2: Agenda
Agenda Highlights Financial Q&A and strategy performance Christel Rendu de Lint Thomas Heinzl Georg Schubiger CFO Co-CEOs July 26, 2024 2
Slide 3: Highlights and strategy
Highlights and strategy
Slide 4: Half-year 2024 – Global growth supported investor confidence
Half-year 2024 – Global growth supported investor confidence Equity and bond markets Government bond yields FX rates MSCI ACWI, BBG Global Aggregate, Indexed 2Y and 10Y government bond yields, % Nominal broad effective FX rates, Indexed 140 6.0% 110 5.0% 105 120 4.0% 3.0% 100 100 2.0% 95 1.0% 80 0.0
Slide 5: Half-year 2024 highlights
Half-year 2024 highlights Financial results Strategic progress Strong business momentum with Successfully completed the integration of Digital profit before tax up 12% to CHF 173 M Investing Positive NNM, AuM up 9% and Private Clients Closed the Ancala acquisition, a milestone in our assets surpassi
Slide 6: Private Clients – Continued good momentum
Private Clients – Continued good momentum Highlights Operating income AuM and Relationship Managers Private Clients, CHF M CHF B, FTE, CHF M − Successfully operating as an 109 integrated Private Client segment 97 98 +10% 93 531 − AuM surpassing the CHF 100 B 483 82 358 355 mark 445 427 153 75 392 12
Slide 7: Institutional Clients – Improved flow dynamics amidst ongoing industry challenges
Institutional Clients – Improved flow dynamics amidst ongoing industry challenges Highlights Net new money AuM development Institutional Clients, CHF B Institutional Clients, CHF B − Halted outflows, while active +8% industry fund flows generally +2.9 109 111 remain negative 103 −0.1 37 − Fixed Inco
Slide 8: Investments – Milestone achievement in expanding our offering
Investments – Milestone achievement in expanding our offering Highlights Active offering across all asset classes Investments: Investment performance % of assets in 1st and 2nd quartiles1,2 − Successfully closed the acquisition of Ancala 90 91 89 75 − Flagship products with strong 70 73 performance
Slide 9: Cost – Our efficiency program is on track
Cost – Our efficiency program is on track Highlights Full implementation by end 2026 Focus areas Gross savings trajectory Exit rate, CHF M − On track for half of the gross 1 Consolidate IT infrastructure and savings by year-end application landscape ~100 ~80 − Over ¾ of savings by end-2025, Trim ven
Slide 10: Our through-the-cycle financial targets
Our through-the-cycle financial targets 1H 2024 FY 2023 Target Growth Operating income growth 4.0% 1.9% 4% – 6% Net new money growth 2.2% –1.7% 4% – 6% Profitability Return on equity 12.3% 10.5% > 14% C/I ratio 76.1% 79.2% < 72% Capital & Payout CET1 ratio 18.3% 18.7% > 12% Total capital ratio 23.6%
Slide 11: Financial performance
Financial performance
Slide 12: Strong operating performance
Strong operating performance Highlights Profit before tax and net income development CHF M − Strong operating performance, +28 –21 +22 173 +12% profit before tax up by 12% –10 154 43 − Cost increase driven by 2023 Taxes1,2 27 strategic PC growth initiative and one-offs in connection with the Ancala
Slide 13: AuM and NNM trending positively
AuM and NNM trending positively Highlights Assets under management Net new money CHF B CHF B − AuM up 9% on positive +9% Total −0.9 −2.6 2.3 flows, performance and 225.9 FX 206.8 6.6 10.3 2.3 − NNM 2.3 B on strong 111.4 PC1 2.4 4.9% 2.1 Private flows and halted 103.3 1.1 Institutional outflows -0.1
Slide 14: Higher operating income
Higher operating income Highlights By Category By Segment CHF M CHF M − Operating income up 4% on +4% higher client activity 728 728 700 700 Net 63 −34% − Strong PC revenue growth interest 95 610 610 197 –3% despite NII headwinds IC 203 85 181 − Marginally lower IC revenues 411 −1% Net fee & due to
Slide 15: Stable gross margins in Institutional and Private Client business
Stable gross margins in Institutional and Private Client business Highlights Institutional Clients Private Clients bps bps − Continued stable margins ~ 101 101 − PC margin unchanged on higher ~ Trading transactional revenues and Performance 37 37 (Structured 88 34 Solutions) 25 29 stable recurring f
Slide 16: Cost/income ratio improved
Cost/income ratio improved Highlights Operating expenses Cost/income ratio2 CHF M % − Cost/income ratio improved 1.7 pp +2% −1.7pp − Cost increase driven by 2023 555 546 80.8% strategic PC growth initiative and 496 77.8% one-offs in connection with the 76.1% Ancala acquisition < 72% Personnel 363 36
Slide 17: Further balance sheet strengthening
Further balance sheet strengthening Highlights Basel III capital ratios % of RWA − Balance sheet growth through higher deposits and structured products volume 24.0% 23.8% 23.6% 5.1% 5.3% 20.6% AT1 6.7% − Basel III ratios strong: Total capital ratio of 23.6%, LCR of 222% and leverage ratio at 4.9% 18
Slide 18: Continued track record of value and capital creation
Continued track record of value and capital creation Highlights Strong track record − Value creation positive since 2014, dividend increasing since 17.2% Return on tangible equity 12.3% Return on equity 2011 9.3% Cost of equity2 − ROCET1 20.6%, ROTE 17.2% 2.25 2.25 3.00 3.00 3.00 1.85 2.00 2.10 2.10
Slide 19: Results summary
Results summary Highlights Key figures (CHF M) 1H 2024 2H 2023 1H 2023 ∆ (%)1 Assets under Management (B) 226 207 212 +9% Net New Money (B) 2.3 −2.6 −0.9 − Strong operating performance Operating income2 728 610 700 +4% Operating expense 555 496 546 +2% − Return to positive net new money of which one
Slide 20: Key messages
Key messages
Slide 21: Half-year 2024 highlights
Half-year 2024 highlights Financial results Strategic progress Strong business momentum with Successfully completed the integration of Digital profit before tax up 12% to CHF 173 M Investing Positive NNM, AuM up 9% and Private Clients Closed the Ancala acquisition, a milestone in our assets surpassi
Slide 22: Q&A
Q&A
Slide 23: Upcoming events
Upcoming events Investor Day 2024 and 9-month trading update 2024 November 7, 2024 Full-year results 2024 February 7, 2025 Annual General Meeting 2025 April 2, 2025 Refer to the Vontobel Investor Relations website for details: www.vontobel.com/calendar July 26, 2024 23
Slide 24: Appendix
Appendix Vontobel
Slide 25: 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
Slide 26: 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