Swiss bank Vontobel had what it deemed a «good» result in the first half, achieved mainly thanks to a business approach that kept it shielded from ill-effects of the pandemic on the real economy.
Pretax profit at Zurich-based Vontobel increased 4 percent to 156.1 million Swiss francs ($169.4 million) in the first half of 2020, according to a statement released on Tuesday. Net new money grew 7.5 percent on an annualized basis, which significantly exceeded the bank's target range of 4 to 6 percent. Operating income was flat at 623 million francs.
Vontobel’s cost-income ratio improved slightly to 75 percent but remained above its target threshold of 72 percent. The bank made certain investments in growth in the first half – notably the bank announced a new team for wealthy clients in Milan on Monday.
Well Positioned to Navigate Recession
Despite the bank’s focus – Vontobel doesn’t provide loans to corporate clients – the coronacrisis had an impact on the first-half result: assets under management dropped to 218.6 billion francs by the end of June from 226.1 billion at the start of the year.
This was due to the market collapse resulting from the coronacrisis. The bank is however optimistic about its future and said that the business was secure and well-positioned to navigate the anticipated recession.
