The VZ Group concluded the first half of the year with a net profit of 102,8 million francs, an increase of 19,1 percent compared to the same period last year, as the company announced on Friday.

Overall, the financial services provider generated revenue of 252,9 million francs (+12,8 percent). In the interest business, the interest rate cuts by the National Bank had a noticeable effect. Compared to the same period last year, it was 19,3 percent higher, but 4,4 percent lower than in the second half of 2023.

Significant Increase in Assets Under Management

Fee income rose less sharply than in the same period last year. However, the advisory business is still running smoothly, and demand remains high, as VZ Holding reported. In the first half of the year, these consultations led to one or more management services for 4'200 clients. Net new money amounted to 2,3 billion francs, in line with the previous year.

Assets under management climbed to 49,6 billion francs, compared to 44,9 billion francs at the end of 2023 and 42,6 billion francs in the same period last year.

Growth Slows

The outlook is cautious. «The lower key interest rates mean that our interest income will decrease in the second half of the year. This means that earnings and profits will grow more slowly in the second half as forecast,» said Giulio Vitarelli, Chairman of the Executive Board. «From today's perspective, growth for the entire 2024 fiscal year is likely to be in line with the long-term average, provided that the financial markets remain free of crises. Thanks to the strong business situation, our shareholders can expect a further increase in dividends.»