Liechtenstein's VP Bank Group has generated positive group net income for 2016. Asia is back as a major contributor, what turned it around?
VP Bank Group (VP) reported a group net income of 58 million Swiss francs for the 2016 financial year, making progress as the market developed.
In the previous financial year, VP recorded an increase of 2.8 percent in client assets under management and the core capital ratio rose from 24.4 percent to an above average 27.1 percent, as a result a higher dividend is being proposed.
Compared to the organic development of net new money in 2015, net new money showed a significant improvement in 2016.
Strong market development meant net new money inflows were particularly healthy in the Asian market. Furthermore, outflows had to be recorded in Europe, against the backdrop of the regulatory environment and taxation.
Rigorous Cost Management
A priority for the bank is adapting the organisation of the strategically important intermediary business to the revised market and customer-orientated focus, as well as a new information platform for intermediaries.
The fact that the team in Singapore has been reinforced highlights the growing importance of the Asian markets.
During 2016, VP laid down a solid base for increased profitability. At the same time, the bank will press forward with their rigorous cost management by further maximising savings potential and optimising the products and services on offer.
Outlook and Asian Expansion
The bank said growth will continue to be a key topic in 2017. Changes are underway in Europe and Asia is continuing to develop into a driving force.
For VP this means the quality of service should strictly continue to be improved and experienced teams should be expanded – particularly in Asia.
Furthermore, any available market opportunities should be taken to invest in growth through acquisitions.
finews.asia reported recently on the appointment of Bruno Morel as new Chief Executive Officer for VP's Singapore operations.
