Swiss asset manager Vontobel has posted a group net profit of CHF132.7m for the first half of 2018, a surge of 31% compared to CHF101.5m in the previous year.
The group’s total operating income stood at CHF583.3m for the half year ended 30 June 2018, up 13% from CHF517.5m a year ago. Operating expenses rose 7% year-on-year to CHF422.4m.
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The asset management business, benefitting from the growth in fixed income products, was the strongest earnings driver, Vontobel said. The unit reported a pre-tax profit of CHF92.5m, a 33% jump from CHF69.5m in the previous year.
Pre-tax profit at the combined wealth management unit, which includes wealth management and the external asset managers business, soared 46% year-on-year to CHF56.2m. The rise was driven by growth in Swiss, Latin America and Italy markets.
The group’s client assets totalled CHF253.6bn as at 30 June 2018. Net inflows were CHF5.1bn during the period.
Vontobel’s BIS CET1 capital ratio and BIS total capital ratio at the end of June 2018 stood at 19.1% and 26.4%, respectively.
Vontobel CEO Zeno Staub said: “Vontobel is well positioned for the future and remains on course for growth. We want to deepen our existing client relationships and to attract new clients – leveraging our strong brand that reflects our client-centricity.
“In view of geopolitical risks and global challenges relating to trade policy, as well as the uncertainty prompted by the monetary policies of central banks, Vontobel expects to be faced with a relatively difficult market environment in the second half of 2018 that will require a prudent approach. Nevertheless, we aim to further increase our already solid profitability in the current financial year compared to 2017.”
