Vontobel achieves 20% increase in net profit – record net inflow of new money totalling CHF 8.2 billion – significant progress in Private Banking

• Vontobel generated a net profit of CHF 76.1 million in the first half of the financial year 2013, an increase of 20% compared to the same period of 2012. The wealth and asset management business was once again the main driver of the growth in profit.
• Vontobel's Asset Management business once again acted as a magnet for new money and contributed CHF 7.4 billion of Vontobel's total net inflow of new money of CHF 8.2 billion. Clients worldwide continued to invest in Quality Growth products, while inflows into other boutiques also strengthened. The new money acquired across all business units resulted in annualized growth in assets under management of 17%.
• Private Banking is visibly making progress. Its consistent focus on changing client needs, its accelerated implementation of the cross-border strategy and its concentration on selected core markets are proving effective. Vontobel increased its pre-tax profit in this business unit by an impressive 49% to CHF 30.2 million compared to the first half of 2012.
• In view of its strong competitive position in Switzerland – where it ranks second – and in Germany – where it ranks eighth – Vontobel's Investment Banking business was able to virtually maintain its earning power in the area of structured products compared to the first half of 2012. The business with external asset managers (EAMs) also reported pleasing developments, with a 13% rise in assets under management.
• The return on equity rose again from 8.6% to 9.7%. Vontobel's proven business model and conservative risk policy are reflected by its strong BIS tier 1 capital ratio of 25.4%. This means that Vontobel has an extremely comfortable capital position that provides a solid basis for the future expansion of the business.

As before, a few comments by the Chairman of the US Federal Reserve are all that is needed to send the financial markets into a state of nervousness and frantic activity. It appears that the interest rate and monetary policies pursued by central banks are steering financial flows in the global markets and are eclipsing developments in the real economy – at least in the short term. In this fragile environment during the first half of the financial year, Vontobel delivered an excellent performance – despite the profound structural changes sweeping the Swiss finance industry. Vontobel's strategy and business model are proving to be a recipe for sustained success. This includes its Private Banking business, whose activities have been further strengthened, as well as the extremely successful Asset Management business and the solid Investment Banking business. CEO Zeno Staub commented: "The profit contribution from Private Banking and Asset Management has almost doubled from 33% to 65% within a period of 24 months. Vontobel has thus confirmed its position as a credible and reliable force in the wealth and asset management sector. This is also demonstrated by the 20% rise in net profit to CHF 76.1 million in the first half of the financial year." One-off costs of CHF 10.6 mn related to changes in the cross-border wealth management business, as well as a final provision of CHF 3.1 mn related to the withholding tax agreement with the UK, are fully included in the net profit.

Significantly stronger earning power in Private Banking
The past few months have seen the accelerated realignment of Private Banking to focus on a cross-border approach. As a logical consequence of this step, private clients from Austria, Italy and Dubai will therefore receive service and advice from specialists in Zurich or Geneva. The core aspects of this strategy are the bundling of expertise as well as the use of a central investment and booking platform domiciled in Switzerland. By combining the specialist knowhow available in its Private Banking, Asset Management and Investment Banking businesses, Vontobel creates added value and is able to offer clients its broad-based expertise, while also implementing efficient processes. These different measures collectively enabled the business unit to grow its pre-tax profit by an impressive 49%, from CHF 20.3 mn to CHF 30.2 mn, within one year.

Good strategic position and solid capital base
Vontobel is well positioned: its strong brand, highly qualified employees and first-class capabilities form the basis for the realization of its promise to provide clients with excellent services and consequently for the achievement of future growth. With a return on equity of 9.7%, Vontobel is moving closer to its mid-term target. Its client-oriented business model is proving effective, and its conservative risk policy is demonstrated by its strong BIS tier 1 capital ratio of 25.4%. According to the calculation principles under Basel III that apply from 2013, Vontobel thus substantially exceeds the minimum requirement of 12% prescribed by the Swiss Financial Market Regulator FINMA. "Our excellent capital position guarantees us the necessary flexibility to develop our business and to thus ultimately ensure our company's independence. The resulting strength and solidity – which make Vontobel a reliable partner for all wealth and asset management needs – are sought and valued by clients," added Herbert J. Scheidt, Chairman of the Board of Directors.

Outlook
As a result of the operational progress already achieved by Vontobel, the mid-term targets defined for 2014 are now within reach. At the same time, Vontobel remains cautious in its outlook for the second half of 2013 in view of the volatility that has emerged in recent weeks. The current market environment and political uncertainty clearly create challenges as well as new opportunities. In the second half of the year, Vontobel will continue to systematically pursue the direction it has taken: In the area of Asset Management, it will focus on consolidating its growth momentum and on replicating this growth in other boutiques. In Private Banking, Vontobel wants to reaffirm the earning power it has demonstrated and to gradually generate further organic growth based on its scalable platforms. In Investment Banking, Vontobel will move ahead with the international launch of its derivatives platform deritrade® and will strive to achieve new growth in its EAM business.


Vontobel
Vontobel's mission is to protect and build the wealth our clients have entrusted to us over the long term. Specialising in active asset management and tailor-made investment solutions, we provide responsible and forward-looking advice. In doing so, we are committed to Swiss quality and performance standards. With their good name, our owner family has stood by these principles for generations. As of 30 June 2013, Vontobel held CHF 160 bn of assets. Around 1,400 employees worldwide provide first rate, customized services for clients with an international focus. The registered shares of Vontobel Holding AG are listed on the SIX Swiss Exchange. The Vontobel families and the Vontobel Foundation hold the majority of shares and votes in the company. www.vontobel.com

Contacts

Media Relations:	Reto Giudicetti	+41 (0)58 283 61 63
Investor Relations:	Susanne Borer	+41 (0)58 283 73 29

 

Key dates

2013 results:	7 February 2014
Annual General Meeting 2014:	1 April 2014

Presentation of the Vontobel's first-half 2013 results

For the media and analysts – in German

Date and time:	31 July at 09.00 a.m. (CET)
Location:	Vontobel head office, Gotthardstrasse 43, Zurich
Speakers:	Dr. Zeno Staub, CEO of Vontobel Dr. Martin Sieg, CFO of Vontobel

 

Telephone conference for analysts – in English

Presentation and Q&A:	31 July at 02.00 p.m. (CET)
Speakers:	Dr. Zeno Staub, CEO of Vontobel Dr. Martin Sieg, CFO of Vontobel

 

Please call one of these telephone numbers to listen to the presentation and take part in the Q&A session:
+41 (0)58 310 50 00 (Continental Europe)
+44 (0)203 059 58 62 (UK)
+1 (1)631 570 56 13 (USA)


Please dial in 10 minutes before the start of the presentation and ask for 'the Vontobel's half-year results'.