Liechtenstein-based VP Bank Group has reported a net profit of SFr18.5m ($20.9m) in 2024, down 58.2% from SFr44.2m ($50.07m) in the previous year.
Excluding SFr11.2m ($12.6m) in restructuring and one-off costs, the bank’s net income was 37.3% lower than in 2023.
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Its operating income declined 9.3% to SFr330.5m ($374.4m) in 2024 from SFr364.4m ($412.3m) in 2023, driven by a 23.5% drop in net interest income, though the impact eased in the second half of the year.
VP Bank’s operating expenses fell 1.7% to SFr308.3m from SFr313.5m in 2023, including SFr7.3m in restructuring costs and SFr3.9m in one-off pension fund expenses. Excluding these, costs declined by 5.2%.
As of 31 December 2024, the bank’s client assets under management reached SFr50.7bn, up 9.5% from the end of 2023.
VP Bank’s total assets declined 7.1% year-on-year to SFr10.6bn.
As of December 2024, current assets totalled SFr1.9bn, with SFr0.9bn held in deposits at the Swiss National Bank. At the end of 2024, client deposits totalled SFr8.9bn, down 5.9% from the previous year.
VP Bank Group CEO Urs Monstein said: “The measures to improve earnings and costs are beginning to take hold. In a challenging environment, however, we still have a lot to do to exploit our potential.
“VP Bank has a diversified business model in markets with good growth prospects. With broad-based earnings, we aim to generate sustainable added value and grow profitably.”
VP Bank is implementing measures to enhance efficiency and drive growth, aiming to achieve at least SFr20m in savings by 2026.
At the end of 2024, the cost/income ratio stood at 93.3%.
The bank streamlined operations, reduced redundancies, simplified its product and pricing structure, and exited Hong Kong for economic reasons. As a result, headcount decreased by 6.1% to 945 full-time positions.
In November 2024, VP Bank named Urs Monstein as group CEO after serving as interim head since May 2024, following an internal and external evaluation.
