Combined Wealth Management generates strong profitability
A systematic client focus, the competency-driven product offering and especially also the economies of scale generated due to the broadening of the business base, as well as improved efficiency, had a positive impact on the performance of Combined Wealth Management.
What does this mean in numbers?
- Combined Wealth Management grew its pre-tax profit by 27% to CHF 71.4 million.
- At 70.0%, the cost/income ratio was slightly higher than the figure of 69.1% in the previous year.
- The gross margin in Combined Wealth Management was stable at 68 basis points.
- Despite the outflows in connection with changes to the team in Basel, advised client assets in Combined Wealth Management reached a new record level of CHF 73.6 billion (end-2018: CHF 67.2 billion).
- Net new money totaled CHF 0.3 billion.
Going forward, Vontobel Wealth Management will continue to place a particular emphasis on the quality of earnings without losing sight of its growth targets. With seven new locations in Switzerland and around 100 new relationship managers who are now part of Vontobel following the acquisition of Notenstein La Roche Privatbank, Vontobel has decisively strengthened its basis for future growth in its Swiss home market. The integration is at an advanced stage and will be fully completed in 2019. In spring 2019, Vontobel successfully completed the acquisition of the US-based private clients portfolio from Lombard Odier.
Following the completion of the transactions, Vontobel is now focusing on harnessing the new opportunities they bring and on deepening the business with existing clients as well as acquiring new clients. The quality of its products and advice should enable it to gain further market share and to realize its 2020 target of 4-6% growth.
Innovative digital solution
Innovative digital wealth management solutions such as ‘Volt’ – which has been available to Swiss Vontobel clients since June 2019 – should also contribute to the realization of these goals over the medium term. Vontobel is additionally making Volt’s underlying Digital Investment Solution Platform and the related investment and technology expertise available to other financial services providers who want a comprehensive Swiss alternative. In spring 2020, Raiffeisen Switzerland will become the first partner to offer its own digital wealth management solution for Swiss retail clients based on Vontobel’s Digital Investment Solution Platform. With ‘Volt’ and the Digital Investment Solution Platform, Vontobel has opened up new prospects for growth in its Swiss home market as well as its focus markets.
(only available in German and for persons resident in Switzerland)