Effects of the coronavirus outbreak on VP Bank Group
The extent of the impact that the coronavirus is having on society and the economy, and thus on the financial markets as well, is becoming increasingly clear. High market losses over a very short period of time and extremely high volatility that has never been witnessed before are causing a strain not only on the financial market as a whole but also on VP Bank Group.
ECB gives generously, but leaves interest rates unchanged
The European Central Bank (ECB) is trying to play its part in the coronavirus crisis management. It will increase its existing securities purchase programme by an additional EUR 120 bn by the end of the year. The purchase of corporate bonds is expected to play a large part in this.
Strong growth and substantial rise in earnings in the year 2019
Thanks to a strong operating performance and the positive development of financial mar-kets, VP Bank Group recorded a 34.4 per cent rise in net earnings in 2019 and generated group net income of CHF 73.5 million. At CHF 2.3 billion, the inflow of net new money de-veloped positively for the third time in a row.
The spread of the coronavirus and the fall in oil prices have caused wild swings in equities and bonds. Such extreme situations have traditionally been good selling and/or buying opportunities. Our reaction is twofold.