Interim management statement for the first four months of 2024
After benefiting from the positive interest rate environment in the previous year, VP Bank’s interest income fell in the first four months of 2024, continuing a trend that began in the second half of 2023. This was due to the further shifting of client funds from current account balances to time deposits and securities that bear higher interest rates, a consequence of the changed interest rate environment. This resulted in net profit for the first four months of 2024 that is 50 per cent lower compared with the previous-year period. Operating expenses fell slightly compared with the prior-year period. The net new money inflow currently stands at 1 per cent on an annualised basis.
The development and investment phase with respect to Strategy 2026 is complete. VP Bank is now focused on implementing substantial efficiency measures in order to lower the cost base over the long term and reduce complexity. A corresponding set of measures to bolster and supplement those that are currently ongoing will be presented with the semi-annual results. In addition, the Bank will intensify its efforts to accelerate growth considerably in its strategically relevant areas. Information about this will also be presented with the semi-annual results.
Stephan Zimmermann, Chairman of the Board of Directors of VP Bank: “As a strong partner for intermediaries, a focused private bank and a universal bank in Liechtenstein, VP Bank is optimally positioned for profitable growth. Together with the Board of Directors and the Executive Board, I am continuing to make every effort to exploit this potential by applying the necessary measures with respect to efficiency and growth.”
As of the end of April 2024, VP Bank Group can report an above-average equity base, with a tier 1 ratio of 24.7 per cent, and a very good liquidity situation, with a liquidity coverage ratio (LCR) of 263 per cent.
Note
These are unaudited figures following provisional calculations. The semi-annual results and the semi-annual report with the definitive figures will be published as planned on 20 August 2024. No further information on the Group’s business performance will be released until then.
