Zurich-based Vontobel saw a sharp decline in its assets under management and net profit in 2022, in a year that was characterized by unfavorable market conditions.
After record levels in 2021, Vontobel experienced a 16 percent decline in assets under management (AUM) in 2022 to 204.4 billion Swiss francs ($220.9 billion), according to results released on Wednesday.
Unfavorable market conditions were the main contributor to the decline but the bank also saw negative growth in net new money.
Flow Breakdown
Across wealth and asset management, the firm posted net outflows of 5.2 billion francs (2.1 percent decrease), compared to 5.6 billion francs of net inflows in 2021.
The wealth management unit saw 5.4 billion francs of new money (5.6 percent increase) but the asset management unit posted 10.6 billion francs of outflows (7.4 percent decrease) as «clients stayed on sidelines rather than reinvesting or making new investments in various asset classes», primarily impacting active managers.
Net Profit Down
Overall, Vontobel's Group's net profit fell 40 percent to 229.8 million Swiss francs in 2022 with operating income down 16 percent to 1.29 billion francs. Return on equity also fell 7.6 basis points to 11.2 percent.
After the strong performance in 2021, Vontobel increased its dividend to 3 francs per share from 2.25 francs in the previous year. For 2022, it will recommend the same three-franc dividend.
