VP Bank AG Class A · SIX:VPBN
VP Bank AG Class A — FY2004 Earnings Presentation
41 slides from VP Bank AG Class A's earnings presentation, Mar 14, 2005
Slide 1: Welcome to our analysts conference
VP Bank March 14, 2005 Welcome to our analysts conference March 14, 2005 – SWX Swiss Exchange
Slide 2: Program
Program Welcoming remarks Hans Brunhart Chairman of the Board Commentary Adolf E. Real, CEO Strategic orientation 2004 financial statements Fredy Vogt, CFO Outlook for 2005 Concluding remarks Hans Brunhart, Chairman of the Board 2
Slide 3: Adolf E. Real, Chief Executive Officer
Adolf E. Real Chief Executive Officer 3
Slide 4: Profile 2004
Profile 2004 549 26.1 bln. employees client assets under management 91.2 Mln. consolidated profit 790.8 mln. 7.9 bln. shareholders’ balance sheet- equity total 4
Slide 5: VP Bank Group 2004
VP Bank Group 2004 Foundation for growth has been established • Clear strategy • 2004 financial results in line with expectations • Cost under control – cost/income ratio below 50 percent • Trend in client assets under management clearly not up to expectations 5
Slide 6: VP Vermögensverwaltung GmbH in Munich: Goals
VP Vermögensverwaltung GmbH in Munich Goals • Germany is one of our most important target markets • Active cultivation of this market is high priority • Presence locally in Germany • Changing client needs • Regulatory changes 6
Slide 7: VP Vermögensverwaltung GmbH in Munich: Our goals in Germany
VP Vermögensverwaltung GmbH in Munich Our goals in Germany Proactive move in New client Direction of acquisition Onshore dealings 7
Slide 8: Representative office in Moscow
Representative office in Moscow • Commencement of operations • March 15, 2005 – initiation of activities • June 30, 2005 – official opening of representative office • Goals in Russia: • New client acquisition • Bonding with existing clientele • Proactive steering of compliance 8
Slide 9: Potential of the Russian Federation
Potential of the Russian Federation Economy and wealth Structure of the economy 12% 8% Population 143 mln. 7% 2% GDP CHF 1.450 bln. 1% 29% Per capita GDP 10,400 CHF Savings rate 18.2% 41% HNWI assets CHF 270 bln. Industry Services Government sector Forestry Number of HNWIs ca. 175,000 Construction s
Slide 10: 2005 – VP Bank heading into the future with optimism
2005 – VP Bank heading into the future with optimism • Satisfactory 2004 financial results • Clear strategic orientation • Targeted market expansion in select markets • Quality management: foundation for Business Excellence established • Further brand development 10
Slide 11: The vision of VP Bank
The vision of VP Bank We rank among the best private banks. We earn the privilege of being the preferred partner of our clients. 11
Slide 12: Fredy Vogt, Chief Financial Officer
Fredy Vogt Chief Financial Officer 12
Slide 13: Overview of topics
Overview of topics • Income statement • Balance sheet • Client assets under management • Business segments • Key figures • Appropriation of available earnings • Target amounts • Summary & outlook 13
Slide 14: Income statement
Income statement 14
Slide 15: Operating income
Operating income 2003 2004 264.5 260.4 in CHF million 122.4 111.9 -1.5 % 109.4 99.0 23.8 22.0 19.4 17.0 Interest Fee & commission Trading Other Operating income income income income income 15
Slide 16: Operating expense
Operating expense 2003 2004 125.9 in CHF million 125.0 84.9 83.4 0.7 % 41.6 41.0 Personnel G&A Operating expense expense expense 16
Slide 17: Depreciation and amortization
Depreciation and amortization 2003 29.3 2004 in CHF million 23.1 -21.3 % Depreciation and amortization 17
Slide 18: Provisions
Provisions 2003 2004 in CHF million 10.9 9.5 -12.4 % Provisions 18
Slide 19: Consolidated net profit
Consolidated net profit in CHF million 260.4 91.2 4 . 0 6 .2 1 9 2 10.7 32.5 126.0 .7 0 1 0 .5 2 3 . 6 2 1 Operating Operating D&A and Taxes and Net profit income expense provisions minority interests 19
Slide 20: Balance sheet
Balance sheet 20
Slide 21: Balance sheet total
Balance sheet total 2003 2004 in CHF billion 8.2 7.9 -3.5 % Balance sheet total 21
Slide 22: Client funds recorded on the balance sheet
Client funds recorded on the balance sheet 2003 2004 in CHF billion 7.2 6.8 -4.8 % Client funds (balance sheet) 22
Slide 23: Shareholders' equity
Shareholders’ equity 790.8 91.2 .8 0 9 7 .2 1 9 744.2 - 29.6 - 15.0 .2 4 7 .6 9 -2 .0 5 -1 Legally required equity capital Shareholders’ equity Dividend Treasury shares; Consolidated Shareholders’ equity 31.12.2003 distribution currency net profit 31.12.2004 translation 23
Slide 24: Due from banks
Due from banks 2003 2004 in CHF billion 4.5 4.0 -11.6 % Due from banks 24
Slide 25: Due from customers
Due from customers 2003 2004 in CHF billion 0.2 2.7 2.6 0.3 9% 0.6 10 % 1.6 22 % +4.8 % 59 % Due from Mortgage-backed Other Loans to Non-collateralized customers loans collateral public-sector loans entities 25
Slide 26: Financial investments
Financial investments 2003 2004 561.6 in CHF million 82.4 6 . 1 479.0 6 479.2 5 .4 2 8 0 . .2 15 % 9 9 7 7 4 4 +17.3 % 85 % Financial Debt Equity securities investments instruments 26
Slide 27: Client assets under management
Client assets under management 27
Slide 28: Client assets under management
Client assets under management 2003 2004 in CHF billion 26.1 1.5 25.8 8 1 . . 6 6.8 5 2 .5 1 6% 2 .8 6 26 % 17.8 .8 7 1 +1.2 % 68 % Assets Client Client deposits Fiduciary under management securities (balance sheet) transactions accounts 28
Slide 29: Business segments
Business segments 29
Slide 30: Segment overview 2004
Segment overview 2004 Private Trust Investment Corporate Clients Banking Management Center Group Pretax profit 34.1 59.3 33.7 -25.2 101.9 mln. Managed assets 7.6 9.9 3.2 5.4 26.1 bln. Workforce (full-time equivalents) 71.4 108.2 128.0 241.3 548.9 30
Slide 31: Private Clients 2004
Private Clients 2004 2003 2004 Change Operating income 46.4 mln. 55.2 mln. +18.9 % Operating expense 19.0 mln. 21.1 mln. +10.7 % Pretax profit 27.4 mln. 34.1 mln. +24.6 % 31
Slide 32: Trust Banking 2004
Trust Banking 2004 2003 2004 Change Change in Operating income 72.6 mln. 84.3 mln. +16.0 % Operating expense 25.9 mln. 25.0 mln. -3.5 % Pretax profit 46.7 mln. 59.3 mln. +26.8 % 32
Slide 33: Investment Management 2004
Investment Management 2004 2003 2004 Change Operating income 82.3 mln. 65.6 mln. -20.3 % Operating expense 30.2 mln. 31.9 mln. +5.7 % Pretax profit 52.1 mln. 33.7 mln. -35.3 % 33
Slide 34: Corporate Center 2004 (subsidiaries)
Corporate Center 2004 (subsidiaries) 2003 2004 Change Operating income 59.0 mln. 57.0 mln. -3.4 % Operating expense 41.6 mln. 40.0 mln. -3.8 % Pretax profit 17.4 mln. 17.0 mln. -2.4 % 34
Slide 35: Key figures 2004
Key figures 2004 2003 2004 Tier 1 ratio 14.3 % 15.4 % Cost/income ratio 47.3 % 48.3 % Return on equity 12.7 % 11.5 % Price earnings ratio per bearer share 12.5 % 12.1 % Cons. net profit per bearer share 16.02 CHF 15.42 CHF Dividend per bearer share 5.00 CHF 6.00 CHF 35
Slide 36: Appropriation of available earnings
Appropriation of available earnings 36
Slide 37: Appropriation of available earnings
Appropriation of available earnings 2003 2004 in CHF million in CHF 91.2 6.00 5.00 Payout ratio: 39 percent 35.5 Net profit Dividend Per bearer share 37
Slide 38: Target amounts
Target amounts • Cost/income ratio to be maintained below 50 percent • RoE: 12 to 15 percent • BIZ tier 1 ratio: 16 percent • Client assets under management: CHF 30 billion by end of 2006 38
Slide 39: Summary of 2004
Summary of 2004 • Strong increase in operative business • Costs under control • Financial results within range of our expectations • 20 percent dividend increase • Outlook for 2005 39
Slide 40: Hans Brunhart, Chairman of the Board
Hans Brunhart Chairman of the Board 40
Slide 41: Thank you for your kind attention
VP Bank March 14, 2005 Thank you for your kind attention