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During the first six months of the year, the Vontobel group has substantially increased its profit by almost a third compared to the previous year, attracted new funds and has considerably increased its assets under management.
Privatbank Vontobel in Zurich. (Image: Ennio Leanza / Keystone)
The Vontobel Group is moving at full speed. During the first six months, it has substantially increased its net profit by almost a third to about 133 million francs, attracted more than 5 billion francs in fresh money and has significantly increased its assets under management at 169 billion francs.
The asset management unit contributed the most to its success, increasing its pre-tax profit by one-third to CHF 92.5 million. This expansion is mainly due to the dynamic growth of interest rate products. The Wealth Management division (including external asset managers) even increased its profit contribution by half to CHF 56.2 million, but at CHF 51.9 million the Financial Products division's share is remained stable. The return on equity of just over 15% is all the more impressive as the bank is well capitalized above the average, as evidenced by the 'hard' capital ratio weighted by 19% and the unweighted ratio of 7%. The acquisition of the private bank Notenstein La Roche, completed July 2, is not yet settled. The integration of the bank acquired in May for CHF 700 million is in full swing. The transfer of Raiffeisen to Vontobel did not result in any extraordinary cash outflows. In the middle of the year, the Wealth Management unit manages 54.9 billion francs and, in addition to the funds borrowed from Notenstein, the assets under management amount to 71.4 billion francs a year. – has not changed much since the announcement of the takeover.
The 13 sites in Switzerland have been identified, the structures and management processes are defined and the Notenstein employees who have been acquired know what it is about. For 140 of them or about one third of the former Notenstein employees, there is no future for Vontobel – they have to look for a new job. By the end of the third quarter, integration will be completed at all levels. The goal is to accelerate organic growth in the domestic market, also thanks to the additional impulse of Notenstein.
New targets
The increased water movement of Vontobel following the acquisition of Notenstein and operational progress offers more opportunities, In this context, the Bank has revised its objectives to the medium term for 2020. In terms of profitability, it now targets a return on equity of over 14 (previously> 12)% at Group level and over 68 (> 65) basis points in the management unit. heritage. The cost / income ratio should be less than 72 (<75)% across the bank and less than 70 (<75)% in asset management.
For the second half, the management expects a rather difficult market environment Zeno Staub, director of operations of the Vontobel group, is cautious. Regardless of this, the already strong profitability should be further improved in the current year.
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