Auszug Gesch

42 VP Bank Group Financial Report 2007
Consolidated Annual Report of VP Bank Group
Group net income of over CHF 160 million, net
new client assets under management of CHF
3 billion, again an increase in dividend, pay-out-
ratio at 41.2 percent, increase in operating earnings
of over 10 percent, cost/income ratio stably
at 46.7 percent in spite of expansion program.
The consolidated financial statements prepared in
accordance with International Financial Reporting
Standards (IFRS) of VP Bank Group for 2007 disclose
Group net income, including the share attribu table to
minority interests, of CHF 161.5 million.
In comparison with the results of the prior year 2006
of CHF 134.9 million, this equates to an increase of
20 percent.
This jump in earnings is based on marked growth in
the business with clients, on the one hand, and on
very volatile financial markets on the other, which
positively impacted transaction-related as well as
asset-related revenues in conjunction with a higher
level of client assets under management. Thus,
operating earnings improved by more than 10 percent
(income from interest-differential business
by 9 percent, income from commission business and
services by 13 percent, trading income by 17 percent).
In addition, strongly advancing financial
markets in the first six months of 2007 enabled the
Group to take profits amongst its own financial
investments.
Net new money in client assets under management in
VP Bank Group in 2007 aggregated CHF 3.0 billion.
Operating expenses grew in accordance to plan by
17 percent over the prior year to reach CHF 177.8
million, primarily in personnel expenses. Despite
this, the cost/income ratio was maintained at a stable
level compared to the prior year (46.6 percent) and
as at the end of 2007 amounted to 46.7 percent.
Group net income combined with
cost/income ratio
CHF 91.9 mn
47.3 %
CHF 91.7 mn
48.5 %
CHF 121.7 mn
45.3 %
CHF 134.9 mn
46.6 %
CHF 161.5 mn
46.7 %
2003 2004 2005 2006 2007
Within the framework of a long-term dividend policy,
the Board of Directors will propose to the Annual
General Meeting of Shareholders to be held on April
25, 2008 an increase in dividend to CHF 11.00
per bearer share and CHF 1.10 per registered share
(prior year: CHF 10.00 per bearer share and
CHF 1.00 per registered share).
VP Bank Group clearly on target course for 2010
In spite of the more difficult conditions of an expansion
program covering several years, VP Bank Group
continues to view, as target figures, a cost/income
ratio at 50 percent, a return on equity of 12 to 15
percent and a tier 1 ratio, defined as core capital
stated as a percentage of risk-weighted assets, of
over 16 percent as well as an increase of client assets
under management to CHF 44 billion by the end
of 2009 (excluding acquisitions) with an operating
gross margin of 100 basis points (bp).
The VP Bank Group ended the 2007 financial year
with a cost/income ratio of 46.7 percent (December
31, 2006: 46.6 percent) and a tier 1 ratio (after appropriation
of earnings) of 16.0 percent (December
31, 2006: 15.5 percent); at the end of 2007, client
assets under management aggregated CHF 38.2 billion
(December 31, 2006: CHF 34.8 billion) with an
operating gross margin of 93.8 bp (2006: 95.3 bp).
Client assets under management (in CHF million)
25'808.7
2003
26'108.1
2004
29'578.8
2005
34'773.1
38'235.9
2006 2007
Business developments
The expansion of markets in the Middle and Far East
has meanwhile been launched. A part of this expansion,
and thus reflected for the first time in the
consolidation, is the asset-management company
VP Wealth Management (Middle East) Ltd., which
opened for business at the beginning of April 2007.
At this location, VP Bank provides services to highnet-worth
private individuals primarily from the Ara-