VP Bank Reports Significant Drop in Net Profits for 2024, But Assets Under Management Increase
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Loading... - Daan Drukker
- 26 Mar 2025
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Liechtenstein-based VP Bank has released its annual financial results for 2024, revealing a net profit of SFr18.5 million (approximately $21 million), marking a sharp decline of 58.2 percent compared to the previous year. When excluding restructuring and one-off costs totaling SFr11.2 million, the adjusted profit still reflects a 37.3 percent decrease from the prior year.
Despite the drop in profits, the bank reported a 9.5 percent increase in client assets under management, which rose to SFr50.7 billion. The new money inflow was also positive, showing a growth of 3.6 percent. After accounting for forced outflows and write-offs amounting to SFr1.2 billion, VP Bank recorded a net new money inflow of SFr1.7 billion.
The bank's loan volume increased by 8.7 percent, rising from SFr5.5 billion at the end of 2023 to SFr5.9 billion. However, operating income fell by 9.3 percent to SFr330.5 million, primarily due to a 23.5 percent decrease in net interest income. The decline in net interest income was more pronounced in the first half of the year, where it fell by 27.1 percent, but the rate of decline slowed to 19.2 percent in the second half.
Operating expenses decreased by 1.7 percent to SFr308.3 million, which included restructuring costs of SFr7.3 million and one-off pension fund expenses of SFr3.9 million. Excluding these one-off costs, expenses decreased by 5.2 percent.
VP Bank is implementing a series of measures aimed at increasing efficiency and accelerating growth, with a target of achieving a minimum of SFr20 million in efficiency gains by the end of 2026. The bank's cost/income ratio stood at 93.3 percent at the end of 2024.
In 2024, VP Bank intensified its efforts to align processes with client needs, resulting in a 6.1 percent reduction in headcount to 945 full-time positions. The bank also decided to withdraw from the Hong Kong market for economic reasons, focusing instead on its Singapore operations.
Urs Monstein, the group CEO of VP Bank, stated, “The measures to improve earnings and costs are beginning to take hold. In a challenging environment, however, we still have a lot to do to exploit our potential. VP Bank has a diversified business model in markets with good growth prospects.”
The board of directors has proposed a dividend payout of SFr4.00 per registered share A and SFr0.40 per registered share B at the annual general meeting scheduled for April 25, 2025. Additionally, Mauro Pedrazzini is proposed for re-election to the board for another three-year term, while Ursula Lang and Beat Graf will resign after their respective terms. The board has nominated Stephan Ochsner and Barbara Ofner as successors, pending approval from the Financial Market Authority (FMA) Liechtenstein.
