VP Bank Group, a Liechtenstein-based private bank, has said that that the coronavirus (Covid-19) pandemic is “leaving a mark” on its loan portfolio.
The pandemic calls for a larger valuation adjustment to an individual position of around CHF20m, noted the bank.
However, the bank further said that its recent performance negates the requirement of a provision.
The bank came to this conclusion after carrying out supplemental stress tests on outstanding loans.
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The quality of the bank’s loan portfolio is also said to be high.
“However, we can today state that apart from this larger valuation adjustment on one individual position in the first quarter of 2020, VP Bank Group posted results that on whole are satisfactory,” the bank noted.
The private bank also said that asset management has particularly reported good performance to date due to the defensive orientation of the portfolios.
Due to the market turmoil triggered by the Covid-19 pandemic, VP Bank is unable to offer a reliable prediction on its annual results.
The bank stated: “High market losses over a very short period of time and extremely high volatility that has never been witnessed before are causing a strain not only on the financial market as a whole but also on VP Bank Group.
“Thanks to its very healthy equity base, comfortable liquidity situation and operational strength, VP Bank Group is in a good position to cope with the current crisis.”
VP Bank has branches in Vaduz, Zurich, Luxembourg, Singapore, Hong Kong as well as Road Town (British Virgin Islands).
The private bank’s net income for the year ended 31 December 2019 was CHF73.5m.
Its client assets under management at the end of the period totalled CHF47.6bn.