VP Bank Group, a Liechtenstein-based private bank, has reported net income of CHF54.7m for the year ended 31 December 2018.
This marks a 17% slump from CHF65.8m in the previous year.
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The performance was said to be hit by the bank’s growth strategy and negative market development.
The private bank’s total operating income in 2018 was CHF290.8m, down 3% from CHF300.1m a year earlier.
Operating expenses rose 1% year-on-year to CHF232.3m.
The bank attributed the rise to higher personnel costs mainly due to the relationship manager hiring programme, investment in digitalisation, and expansion of international sites.
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By GlobalDataThe bank’s cost/income ratio was 75.8% at end-December 2018, versus 64.2% last year.
Tier-1 ratio was 20.9% while leverage ratio stood at 7.3%. Last year, the figures were 25.7% and 7. 5%, respectively.
Assets under management totalled CHF41.5bn at the end of December 2018.
Net inflow of new money was CHF3.2bn.
“The inflows of client assets were achieved thanks to intensive market development, inflows from existing clients and the recruitment of new client advisers,” the bank said.
VP Bank Group CEO ad interim Urs Monstein said: “The renewed rise in net new assets beat expectations and underscores the effectiveness of our growth strategy.
“We are confident that we will be able to generate additional income from our numerous investments over the coming years.”
