After a grim 2024 marked by layoffs, portfolio cuts (including Russian clients), a profit slump, and scrapped bonuses, VP Bank presented its half-year results on Tuesday.

Group profit jumped 150.2 percent year-on-year to 28.8 million Swiss francs, albeit from a modest base. Excluding a one-off insurance gain of 4.6 million francs booked under other income, the increase would have been 115.1 percent.

Strong Net New Money Inflows, But Moderate Commission Income

In interest operations, VP Bank was able to limit the damage from falling interest rates. Income declined by 3.6 percent to 73.2 million francs, with the loan volume remaining at 5.9 billion francs, thus at the level of year-end 2024.

In the commission and services business, which is also important for the bank, income edged up 1.1 percent to 69 million francs, a comparatively modest increase. On the positive side, the bank reported net new money inflows of 2.1 billion francs, with assets under management rising by 2.2 percent to 51.9 billion.

Lower Depreciation Reduces Operating Expenses

A clear improvement was achieved in trading operations; an increase of 29.5 percent to 29.5 million Swiss francs.

Operating expenses fell by 4 percent to 142.8 million francs. Personnel costs remained unchanged at 85.9 million francs, while general expenses fell by 4.1 percent to 41.9 million francs. Depreciation expenses dropped more sharply, down 19.7 percent to 15 million francs.

Improvement in Cost-Income Ratio

In 2024, VP Bank launched a package of measures to boost efficiency and accelerate growth - steps that are now bearing fruit. Costs have been reduced and net new money inflows increased. As a result, the cost-income ratio improved to 81.5 percent, compared with 91.5 percent in the first half and 93.3 percent for the full year 2024.

Regardless of the ongoing growth initiatives, VP Bank intends to continue adhering to strict cost discipline.

«High Cost Discipline and Consistent Strategy Implementation»

This is also reflected in the comment of Urs Monstein, Group CEO of VP Bank: «The bank was able to significantly improve its result compared to the previous year. The initiatives introduced are showing effect, and we succeeded in growing even under challenging conditions. We continue to focus on sustainable profitability, high cost discipline, and the consistent implementation of our strategy.»

The outlook remains sober: «After a strong first half of 2025, supported by temporary one-off effects and by an above-average demand trend, VP Bank expects normalized business development in the second half, also due to geopolitical uncertainties.»