VP Bank Group, a Liechtenstein-based private bank, has reported net income of CHF24.4m for the first half of 2016, a slump of 40.3% compared to CHF40.9m a year ago.
The private bank’s last year’s profit was bolstered by a one-time gain from the merger with Centrum Bank. Excluding the effect of the non-recurring item of CHF25m, the bank’s profit for the first-half of 2016 rose by CHF8.5m.
VP Bank’s total operating income dipped 24.7% to CHF129.8m, from CHF172.5m in the first half of 2015.
The private bank’s cost/income ratio in the first half rose to 68.9% from 59.4% in the year ago period, while Tier-1 ratio increased to 25.7% from 24.4% at year-end 2015.
As of 30 June 2016, the bank’s assets under management dropped to CHF34bn from CHF34.8bn at the end of December 2015. Net new money outflow in the first half was CHF0.2bn.
VP Bank Group CEO Alfred Moeckli said: “In order to promote organic growth, we plan to hire an additional 25 senior client relationship officers per annum during the next three years as part of a recruitment offensive.
“In addition, we are working at high pressure on developing new innovative services as part of our digitalisation strategy and making targeted investments in digital tools.”