In 2024, VP Bank recorded an annual profit of 18,5 million francs. Compared to the previous year, this represents a decline of 58 percent, as the Liechtenstein-based bank announced on Thursday.

Adjusted for restructuring costs and one-time expenses amounting to 11,2 million francs, the result was 37 percent lower than the previous year.

Higher Client Assets and Loan Volume

Business volume grew. Managed client assets increased by 9,5 percent to 50,7 billion francs by the end of the year, with net new money inflows of 1,7 billion francs, an increase of 3,6 percent. Loan volume rose by 8,7 percent to 5,9 billion francs. While mortgage lending grew by 13 percent, the volume of other loans increased by 1,7 percent.

Significantly Lower Interest Income

VP Bank reported a sharp decline in interest income, which fell by nearly 24 percent to 102,3 million francs. Commission and service business remained nearly unchanged at 137,1 million francs (-0,6 percent), while trading business declined by 4,6 percent to 81,4 million francs.

Overall, total operating income amounted to 330,5 million francs, 9,3 percent lower than the previous year's figure.

Efficiency Improvements on Track

On the cost side, operating expenses decreased by 1,7 percent to 308,3 million francs. This includes restructuring costs of 7,3 million francs and one-time pension fund expenses of 3,9 million francs. Excluding these items, costs fell by 5,2 percent.

The measures aimed at increasing efficiency and accelerating growth are progressing as planned. «The initiatives to improve revenues and costs are beginning to take effect,» commented Urs Monstein, CEO of VP Bank. «However, in a challenging environment, there is still much work to be done to fully realize our potential.» The efficiency target of at least 20 million francs is expected to be achieved by the end of 2026.

Lower Dividend
Shareholders will also feel the impact of the profit decline. The dividend per registered share A is set at 4,00 francs, and per registered share B at 0,40 francs. This represents a reduction of 1 franc and 10 centimes, respectively, compared to the previous year.

The proposed payout ratio thus stands at 134,0 percent of the consolidated profit generated.