Vontobel Holding AG (0QKE) Q4 2023 Earnings Call

Investor webinar replay

Replay transcript excerpt

Today, Georg, Thomas and I will provide you with an update on our 2023 results and key decisions that we will implement to accelerate the execution of our strategy. Let me first share our observations on the market backdrop in 2023 and how this shaped our results. Entering 2023, the questions on every investor's mind were how high will interest rates go and how much damage will these do to the growth outlook? In addition, it was clear that after a disastrous 2022, the priority of investors, and in particular the more tactical ones, was to protect capital at all costs. This starting point, coupled with the highest cash rate since before the global financial crisis, led investors to either wait and see or flee towards safe products and money markets. Emerging market equities were particularly hit due to the geopolitical tensions and a China that has been viewed less and less market friendly. The last quarter of the year has given a glimpse of what is probably now in store. As major central banks indicated that they reached the peak in the tightening cycle, equity and fixed income assets enjoy a significant rebound and the dollar was hurt. With growth data remaining relatively robust globally, the end of the tightening cycle reached, and yields in fixed income historically elevated, this should induce investors to start dipping their investment tools again in 2024. Turning to our key messages for 2023. Our operating profitability is robust at 263 million before tax, with good momentum in our private clients' business. Our assets under management are stable at 207 billion on inflows from private clients and market performance. We retain a very strong capital position with a CT1 ratio of 18.7% that enables us to propose a non-change dividend of 3 Swiss francs per share at...