Liechtenstein’s VP Bank has recovered from a low and its existing clients are clearly backing it up with a flow of new assets. Meanwhile, a key board member is stepping down with immediate effect.
The private bank in July had announced that half-year profit would rise to 35 million Swiss francs ($35.7 million). The official result reported on Tuesday showed an increase to 35.3 million francs from 29.3 million a year ago, a plus of 21 percent.
The Vaduz-based company had net new money of 1.2 billion francs, double the amount of last year. VP Bank intensified its activities with clients, has hired more relationship managers and boosted the inflow of assets from existing clients.
Costs Are Up on Growth Strategy
Assets under management hence showed an increase of almost 10 percent to 45.6 billion francs, with 1 billion francs being generated by the takeover of the private-banking business of Catella Bank.
Operating costs increase 6 percent to 122.7 million francs, not least due to the hiring of new relationship managers. New CEO Paul Arni, who will assume his responsibilities in October, is entrusted with a company that clearly recovered from a dip suffered in 2018.
Key Shareholder Representative Steps Down
Separately, the bank said that Florian Marxer, board member for key shareholder Marxer Foundation, stepped down with immediate effect. He referred to his workload which had increased due to a growth strategy pursued by the family firm and additional mandates he personally had accepted.
Marxer Foundation will nominate a successor for Florian Marxer for election at the annual general meeting due to be held on April 24, 2020.
