Vontobel achieves good result for first half of 2020
Media release
7/28/2020
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- Positioning as pure-play investment manager confirmed and implementation of organizational changes largely completed
- Growth in net new money of CHF 7.4 billion or 7.5% on an annualized basis significantly exceeds ambitious target range of 4–6%
- Solid development of margins and stable outlook for second half of 2020 despite COVID-19 underscores client focus and large proportion of recurring commission income
- Pre-tax profit increased 4% to CHF 156.1 million, or 6% on an adjusted basis
- Advised client assets of CHF 218.6 billion recovered well after declining due to corona
- Operating income of CHF 623.0 million, stable year on year, with significantly improved income quality
- Cost/income ratio of 75% improved year on year
- Good return on equity of 13.4%
- Secure capital position: Tier 1 capital ratio increased to 20.2%
- Ambitious capital market targets extended to 2022
- Asset Management is driver of growth with very good income quality: Gross margin of 42 basis points; 4% increase in operating income
- Wealth Management increases gross margin to 75 basis points and grows income by 2%
- With its business model as a pure-play, client-centric investment manager without a corporate lending business, Vontobel is secure and well positioned to navigate the anticipated recession
