Vontobel Holding Ag · SIX:VONN
Vontobel — H1 2021 Earnings Presentation
32 slides from Vontobel's earnings presentation, Jul 27, 2021
Slide 1: Vontobel half-year 2021 results
Public Vontobel half-year 2021 results Zeno Staub Thomas Heinzl CEO CFO July 27, 2021
Slide 2: Cautionary statement regarding forward-looking statements and disclaimer
Public Cautionary statement regarding forward-looking statements and disclaimer July 27, 2021 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 fo
Slide 3: Achievements
Public Achievements July 27, 2021 − Further strengthening client trust in Vontobel, resulting in strong net new money of CHF 6.6 billion (6.0% growth), record advised client assets of CHF 274.5 billion and improved market shares in structured products − Strategic progress in investment-led UHNWI off
Slide 4: Overview
Public Overview July 27, 2021 Highlights and strategic progress Half-year 2021 financial results Outlook Q&A
Slide 5: Very strong H1 2021 for Vontobel
Public Very strong H1 2021 for Vontobel July 27, 2021 Key figures as of June 30, 2021 Advised client assets Net new money CHF 274.5 bn CHF 6.6 bn of which CHF 244.2 bn of (6.0%1) assets under management Operating income Pre-tax profit Group net profit CHF 780 m CHF 233 m CHF 192 m (+25%) (+50%) (+48
Slide 6: One Vontobel: strategic direction from a position of strength
Public Strategic direction—acting from a position of strength July 27, 2021 Focus on the long term Transform Vontobel into a pure-play Leverage a collaborative model buy-side investment firm across the firm Client-centric Investment- Asset led Management Investments One Vontobel Wealth Structured Ma
Slide 7: Strategic direction—progressing towards the lighthouse in H1 2021
Public Strategic direction—progressing towards the lighthouse in H1 2021 July 27, 2021 1 Deliver the Vontobel experience − International recognition: Ranked # 20 in Europe by Broadridge Fund Brand Survey − Strong reputation pays off in home market: Voted strongest Swiss Banking Brand by BrandFinance
Slide 8: Strengthening client service
Public Strengthening client service July 27, 2021 Wealth Platforms & Combined – Combination of WM and P&S Management Services unit – Synergies in developing UHNWI business AuM CHF 72.1 billion CHF 20.2 billion CHF 92.3 billion – Structure in line with reporting approach of other wealth and asset man
Slide 9: TwentyFour Asset Management—a success story
Public TwentyFour Asset Management—a success story July 27, 2021 Acquisition delivers on Excellent fit Success journey only just started original 2015 targets − Successfully diversified institutional − TwentyFour AM is today one of − Active Fixed Income remains an asset base with greater focus on UK
Slide 10: Proven and distinctive investment capabilities
Public Proven and distinctive investment capabilities July 27, 2021 Track record in funds % of fund assets with % of fund assets in – Strong performance in Fixed Income 4-/5-star ratings1 1st and 2nd quartiles2 – Percentage of 4- and 5-star rated 97 Fixed Income funds improved to 91% 91 91 89 87 88
Slide 11: Vontobel further strengthens focus on ESG investing
Public Vontobel further strengthens focus on ESG investing July 27, 2021 Our commitment Our progress − Nearly all Vontobel funds 144 take ESG risk into account 127 − Expanded offering with ESG investments1 By 2022, we will actively integrate launch of three new funds in AuM in CHF bn ESG/sustainabil
Slide 12: Overview
Public Overview July 27, 2021 Highlights and strategic progress Half-year 2021 financial results Outlook Q&A
Slide 13: Record advised client assets of CHF 274.5 billion
Public Record advised client assets of CHF 274.5 billion July 27, 2021 Advised client assets; HY growth Advised client assets (CHF bn; percent) (CHF bn) Growth vs. end-2020 12.9 0.0 1.7 274.5 14% p.a. 274.5 10.6% 5.1 248.2 6.6 248.2 226.1 218.6 212.9 244.2 11.2% 198.9 219.6 186.0 193.3 1H19 2H19 1H2
Slide 14: Positive NNM contribution from all Client Units and Asset Classes
Public Positive NNM contribution from all Client Units and Asset Classes July 27, 2021 NNM by Client Unit NNM by Asset Class (CHF bn) (CHF bn) 7.4 7.4 7.4 7.4 0.3 0.4 6.6 6.6 0.4 0.6 3.6 3.5 2.2 6.0 4.8 6.8 0.8 0.8 2.6 2.7 2.9 1.2 0.5 1.2 0.9 0.6 1H20 2H20 1H211 1H20 2H20 1H21 AM WM Equity Multi Ass
Slide 15: Strong income and profit development
Public Strong income and profit development July 27, 2021 Key figures (CHF m) − Strong P&L, driven by higher income and H1 2021 H2 2020 H1 2020 ∆ YOY ∆ YOY CC sensible cost growth Operating income 779.6 642.5 623.0 +25% +27% − Cost development includes one-off Operating expense 546.2 477.6 466.9 +17
Slide 16: Strong operating income growth across all Client Units
Public Strong operating income growth across all Client Units July 27, 2021 Operating income by Client Unit Operating income by category (CHF m) (CHF m) Growth vs. 780 H1 2020 780 3 643 166 86% 623 4 643 36 623 7 94 40 33 294 89 161 185 235 9% 216 208 97 32% 73 79 416 420 447 249 266 291 17% -4 -5 -
Slide 17: Return on assets in H1 2021
Public Return on assets in H1 2021 July 27, 2021 Asset Management RoA Wealth Management RoA (bps) (bps) 76 70 69 11 9 7 19 15 18 42 42 42 0 0 0 42 42 41 46 46 45 1H20 2H20 1H21 1H20 2H20 1H21 Recurring income Interest income Non recurring income Performance fee 17
Slide 18: Pre-tax profit growth of 50%
Public Pre-tax profit growth of 50% July 27, 2021 Pre-tax profit (CHF m) +50% − Operating pre-tax profit increased by CHF 93 million, or 58% +58% (adjusted for one-off items and FX 93 253 movement) 233 − Average FX rates compared to -11 -9 H2 2020 remained stable 156 4 160 − One-off costs of CHF 9.1
Slide 19: Very solid and resilient balance sheet and capital ratios
Public Very solid and resilient balance sheet and capital ratios July 27, 2021 Capital ratios (CHF m; percent) − CET1 capital increased by 5.3% to 1,527 20.5% CHF 1,078 million, total capital by 3.7% to CHF 1,527 million in H1 2021 449 AT1 6.0% − Risk-weighted assets (RWA) stable at 16.0% Vontobel T
Slide 20: Record value creation in H1 2021
Public Record value creation in H1 2021 July 27, 2021 25.9% 19.0% 18.7% 13.1% 14.2% 13.0% 13.3% 12.4% 11.7%1 11.0% 1.55 2.25 2.25 9.7% 2.00 2.10 2.10 9.2% 8.7% 8.5% ~ 9.0% 8.3% 7.6% 1.85 8.0% 7.5% 7.2% 7.4% 8.4% 8.4% 8.8% 1.20 1.30 1.10 Return on tangible equity (%) Return on equity (in %) Cost of e
Slide 21: Summary of business KPIs
Public Summary of business KPIs July 27, 2021 H1 2021 H1 2020 Targets Net new money growth 6.0% 7.5% 4% – 6% Operating income growth 25.1% 0.0% 4% – 6% Pre-tax profit growth 49.5% 4.3% – Net profit growth 48.5% -1.4% – Cost/income ratio 69.6% 74.7% < 72% CET1 ratio 14.5% 13.8% > 12% Total capital ra
Slide 22: Overview
Public Overview July 27, 2021 Highlights and strategic progress Half-year 2021 financial results Outlook Q&A
Slide 23: Investing is the new form of saving
Public Investing is the new form of saving July 27, 2021 6,3% – Staying invested was key over last 20 years; and will be over the next 20 years 4,4% Excess Return p.a. – Clients need and value a 3,3% professional partner 3,0% 3,2% 2,7% 2,7% 2,6% – Firms have to earn trust to be a long-term partner t
Slide 24: Vontobel reaffirms commitment to existing strategy
Public Vontobel reaffirms commitment to existing strategy July 27, 2021 Strong asset base Investment-led and technology- Committed to building on strong enabled offering in markets that are foundations to transform change flooded with money into opportunities AuM (CHF bn) – Growing demand for profes
Slide 25: Q&A
Public Q&A 25
Slide 26: Appendix
Public Appendix 26
Slide 27: AuM split
Public AuM split July 27, 2021 AuM by Client Unit AuM by Asset Class (CHF bn) (CHF bn) 244 244 220 4 220 3 57 193 72 193 2 51 64 57 43 20 50 18 48 15 45 135 148 137 120 106 121 1H20 2H20 1H211 1H20 2H20 1H21 AM WM Multi Asset Equity P&S DI & Other Fixed Income 1 Average AuM per client unit in H1 202
Slide 28: Current business mix is resilient and geographically well diversified
Public Current business mix is resilient and geographically well diversified July 27, 2021 Assets under management by Assets under management by client domicile (mid-2021) mandate type (mid-2021) Execution / Other custody Collective investments / 9% 12% funds APAC / EM Advisory 27% 14% Switzerland m
Slide 29: Proven and distinctive investment capabilities
Public Proven and distinctive investment capabilities July 27, 2021 Advised client assets by asset class Structured (June 30, 2021, totaling CHF 274.5 bn) 1 Products Other 3% 2% 275 Equity 248 13 21% 11 8.6 73 38.1 5.9 65 20 19.3 18 Multi 97.7 24.2 Asset 55% 169 26.6 154 Fixed Income 54.1 19% FY 202
Slide 30: High quality of bond portfolio maintained
Public High quality of bond portfolio maintained July 27, 2021 Counterparty exposure by rating Counterparty exposure by sector (end June 2021) (end June 2021) 5% 0% 20% 25% 37% 42% 28% 43% AAA A Other Government / public sector bodies AA BBB Financials Corporate (non-financials) Note: Total issuer r
Slide 31: Swiss market is fragmented and undergoing structural change
Public Swiss market is fragmented and undergoing structural change—creating opportunities for Vontobel to accelerate growth July 27, 2021 Private banks in Switzerland Comments – Number of Swiss private banks has –39% -39% decreased by almost 40% since 163 158 2010 147 138 – Structural change is expe
Slide 32: Vontobel families hold more than 50 percent of share capital
Public Vontobel families hold more than 50 percent of share capital and are strongly committed to Vontobel July 27, 2021 Shareholder structure1 Vontobel Foundation and Pellegrinus Holding 19.6% Vontrust AG Free float 49.1% 14.3% Pooled shares total Shares in the core pooling 50.9% agreement 44.5% Ad