Reports
Profits Rise At Vontobel, AuM Dips, Cost/Income Ratio Improves
The wealth and financial services firm has reported a rise in net profit for the first six months of 2016. Market conditions remain challenging, it said.
(A previous version of this item has been published on WealthBriefing, sister news service to this one)
Zurich-listed Vontobel, which operates in regions including Asia, achieved an 8 per cent year-on-year rise in net profit to SFr105.7 million ($107.3 million) in the first six months of the year, it reported yesterday.
Asset management was again the main earnings driver at Vontobel, producing a 26 per cent rise in pre-tax profit to SFr85.3 million compared to the first half of 2015.
Wealth management contributed SFr34.2 million to pre-tax profit; financial products gained market share but felt the effects of weak markets, which were reflected in a 22 per cent drop in pre-tax profit to SFr30.0 million, the firm said in a statement.
The cost/income ratio improved from 75.7 per cent in the first half of 2015 to 72.9 per cent.
Advised client assets were SFr43.3 billion. In the first six months of 2016, private and institutional clients put more than SFr3.1 billion of new money into Vontobel, translating into annualised growth of 7 per cent. Total client assets declined slightly to SFr179.3 billion.
“The first half of the year demonstrates that with our strategy, which is focused on delivering benefits for clients and on maintaining our entrepreneurial agility, Vontobel is well positioned to operate even in difficult periods and is on the right track. All three businesses – wealth management, asset management and financial products – display a high level of profitability and business momentum. In this context, Vontobel is primarily striving to generate organic growth, which can be supported by individual transactions – as underscored by the agreements with Raiffeisen,” said Zeno Staub, CEO of Vontobel.
“We will continue to systematically pursue our growth and profit targets even though we have to assume that operating conditions for our business will not improve in the second half of the year," he added.
