Liechtenstein-based VP Bank has introduced a series of measures to improve profitability. In Asia, this includes significant job cuts and a sharpened focus via its Singapore office.
Yesterday, VP Bank unveiled a package of new measures aimed at achieving a minimum efficiency target of 20 million Swiss francs ($23.4 million) by the end of 2026. They include a focus on client-oriented processes, elimination of redundancies as well as simplification of existing products, such as the discontinuation of private market investments.
«We cannot be satisfied with the result, and we are not», said chief operating officer and interim CEO Urs Monstein during a press conference, referring to the bank’s 54.8 percent year-on-year profit drop to 11.5 million francs in the first half of 2024.
Asia Spotlighted in Job Cuts
During the conference, Monstein said that the bank expects to achieve a net reduction of 100 positions globally, marking a 10 percent decrease from the total workforce of 1,000 employees.
Compared to other regions, job cuts will be more significant in Asia, where the bank recently decided to close a Hong Kong office that houses 14 employees.
Intermediary Focus in Singapore
VP Bank reiterated that it «wants to maintain its presence in growth markets in Asia». It will continue to expand and strengthen its intermediary and private banking presence in the region while exploring new opportunities via its Singapore branch, which will now be co-led by Reto Marx and 17-year VP Bank veteran Thomas Rupf following the recent resignation of Pamela Phua.
«Overall, this focus on the Bank's strengths should increase the profitability of the Asia region,» VP Bank said in its results.
The bank previously named China, Indonesia, Malaysia, Taiwan and Thailand as defined target markets in the region. There was no mention of them in the latest mid-year announcement and it is not known if there are any changes due to the closure of the Hong Kong office.
