Liechtenstein-based VP Bank's CEO has surprisingly stepped down after five years with the Liechtenstein-based lender. This follows disappointing results and operational challenges in 2023.
After five years in office, CEO Paul Arni is leaving VP Bank Group, effective immediately, as the firm announced surprisingly on Wednesday evening. The bank did not give any reasons. Chief Operating Officer (COO) Urs Monstein will take over the CEO role on an interim basis.
The bank stated that the search for a successor has been initiated. Meanwhile, Arni will remain available as an advisor during this transition phase.
Disappointing Finish to 2023
According to VP Bank, the financial institution is solidly positioned and has the foundations that will enable the second half of the group's strategy to be successfully executed through 2026. However, VP Bank under Arni's leadership had run against some resistance last year. In 2023, it reported disappointing results with new money inflows amounting to just 27 million Swiss francs ($30 million)
Against the backdrop of sanctions resulting from the war in Ukraine, the bank completely wound down its previously important Russian business, which led to asset outflows and higher costs. The latter was reflected in the cost/income ratio, which rose to 86 percent compared to the bank’s target of 75 percent.
