As expected, VP Bank recorded significantly lower profit in 2024. According to the Liechtenstein-based lender, it is on track with its measures to improve efficiency and growth.
VP Bank’s net income for 2024 fell 58 percent year-on-year to 18.5 million Swiss francs ($21 million), according to the bank’s financial results.
Operating income shrunk 9.3 percent to 330.5 million francs with lower net interest income and trading activities while commission and services transactions were flat. Operating expenses decreased 1.7 percent to 308.3 million francs, which included 7.3 million francs in restructuring costs and a one-off expense for the pension fund of 3.9 million francs.
Client assets under management increased 9.5 percent to 50.7 billion. This was partly driven by net new money inflow of 1.7 billion francs, up 3.6 percent, which includes an adjusted forced outflow and write-offs of 1.2 billion francs.
Package of Measures
According to VP Bank, it is «on track with its package of measures to increase efficiency and accelerate growth». This includes an efficiency target set at a minimum of 20 million francs by the end of 2026 which is expected to lead to sustained improvement in the bank’s cost/income ratio, currently at 93.3 percent.
In 2024, redundancies were resolved while the existing product and price landscape was simplified. The bank also withdrew from the Hong Kong market for «economic reasons». Overall, headcount fell 6.1 percent to 945 full-time positions. In 2025, focus will be placed on income while maintaining a high level of cost discipline. Targeted growth initiatives, complemented by the recruitment of client advisors, were also launched in 2024.
«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. With broad-based earnings, we aim to generate sustainable added value and grow profitably,» commented group CEO Urs Monstein.
