VP Bank Group holding its own in a challenging environment
In a challenging market environment, VP Bank Group posted net income for the year of CHF 40.2 million in 2022. Earnings power proved to be resilient, which made it possible to invest further in Strategy 2026 as planned. The Board of Directors proposes an unchanged dividend of CHF 5.00 per share.
Paul H. Arni, CEO of VP Bank Group: “Even in a challenging market environment, VP Bank has the finan- cial strength and stability to invest for the long term in order to offer excellent solutions to its clients and growth and attractive returns to its shareholders. With Open Wealth, we are, going forward, securing our unique selling proposition as one of the most successful intermediary banks and are further expanding our strengths.”
The key financial results for the 2022 financial year in overview are:
- All regions made a positive contribution to Group net income, with the Liechtenstein home market, in which VP Bank operates as a universal bank, remaining the key pillar in the revenue mix.
- Net new money inflow amounted to CHF 1.1 billion, representing growth of 2 per cent.
- Client assets under management fell by 9 per cent to CHF 46.4 billion as a result of the slowdown on the financial markets.
- Total operating income rose by 2 per cent to CHF 336.4 million, constituting the best income result in the last 15 years of VP Bank.
- Primarily due to investments in Strategy 2026 and extraordinary costs related, inter alia, to the pro- cessing of sanctions involving Russian clients, operating expenses rose to CHF 291.2 million, repre- senting an increase of 7 per cent.
- Net income for the year came in at CHF 40.2 million, representing a year-on-year decline of 21 per cent. Profit in the second half of the year fell by 9 per cent compared with the prior-year period.
- The cost/income ratio stood at 86.6 per cent.
- With a tier 1 ratio of 21.7 per cent, VP Bank has a strong capital base.
- The Board of Directors will propose to the annual general meeting on 28 April 2023 that a dividend be distributed in the amount of CHF 5.00 per registered share A and CHF 0.50 per registered share B, which corresponds to an unchanged dividend.
- VP Bank maintains its Strategy 2026 and confirms its long-term ambitions. However, it is recalibrating its financial targets for 2026 due to geopolitical uncertainties and the changing market environment.
The Sustainability Report 2021 can be downloaded from the VP Bank website at www.vpbank.com/en/about-us/responsibility/group-sustainability
The online Annual Report 2022 is available at report vpbank.com.
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