VP Bank AG Zürich/Switzerland
Origin of VP Bank AG Zürich/Switzerland
VP Bank (Switzerland) Ltd was founded 1988 in Zurich and is a wholly-owned subsidiary of VP Bank Liechtenstein. The bank has 80 employees in Switzerland and 800 worldwide. VP Bank Liechtenstein was established in 1956 by Guido Feger, one of Liechtenstein’s most regarded fiduciaries. In 2018 VP Bank (Switzerland) and VP Bank, Luxembourg is celebrating their 30-year anniversary.
The fund competence center in Luxemburg, VP Fund Solutions is celebrating their 20-year anniversary. The VP Group is present at six different locations worldwide, Switzerland, Luxembourg, Russia, Singapore, Hongkong and the British Virgin Islands. The Group has three major shareholders who hold together 43.7 %.
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Philosophy and Strategy
Long-standing client relationship, the personal touch, and the independent advisory services are essential to VP Bank. The bank is a trusted partner for private clients and financial intermediaries. Together with their partners worldwide, they offer innovative proprietary solutions or the best traditional investments.
The target markets of VP are in Europe, Liechtenstein, Switzerland, Germany, Luxembourg, Ukraine and Russia and in Asia, Singapore, Hongkong, Malaysia, Indonesia, and Thailand. The primary strategy of the bank is to pursue qualitative and profitable growth. The strong equity position of VP Bank allows it to invest in growth through mergers and acquisitions. The bank wants to offer clients reliable banking services in a digital environment.
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Services and Solutions
The core competencies of VP Bank are the asset management for private and institutional clients, investment advisory for private and institutional clients, support and advice for independent asset managers and the credit business. External asset managers receive support from the advisory team. The can access the ProLink information platform, where they can get the essential services and information they need.
The private banking business offers asset management, financing, wealth planning and investment advisory for private clients. In asset management, VP Bank provides portfolio monitoring as well as delegated investment decisions. The investment advisory team gives market information and product information. The fund business is significant to VP Bank. They offer third-party funds as well as proprietary funds.
VP Fund Solutions handle all services related to the fund business. The lending business is a dependent and constant pillar of VP Bank. In Liechtenstein, the bank also offers corporate and retail lending. The investment advisory is the top priority at VP Bank. The bank established new quality standards to ensure that all clients continuously receive high-quality advice.
Risk Management
For the stability of a bank the risk management, the liquidity and the capital are essential. The Board of Directors is responsible for the risk policy and the implementation of the risk framework. The risk groups are the operational risk, financial risk, and business risk. There are clear organizational processes and structures, methods and instruments and limits and measurements.
For further development and ongoing effectiveness, the risks are continuously reviewed, assessed, monitored and measured. For the credit granting activities and the interbank business internal limits and directives are set. The liquidity coverage ratio of VP Bank is at 161 %. The management and control of the credit risk are very important since 44 % of total assets is attributed to the client lending business. The financial risks include the market risk, the credit risk, and the liquidity risk. The operational risks are technology risk, employee risk, legal & compliance risk and process risk. The business risk includes the strategy risk.
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Added-Value Services
In 2017 net new client money increased by 7.4 % or 1.894 bn CHF mainly due to intensive market development efforts and the hiring of new client advisors. VP Bank met its organic growth targets at all locations of the group in 2017. VP Bank expanded its fund business. The bank made some adjustments to their brand image. The corporate identity was refreshed, and the website was completely reconfigured.
VP Bank was named “Top Provider” in the “Fuchsbriefe” ranking for the advisory performance. In the whole German-speaking region, VP Bank ranks among the first five banks. VP Bank’s e-banking system is very secure, and clients have access to their portfolio around the clock. VP Bank has a clear digitalization strategy.
This strategy centers on the expansion of the online service, group-wide digitalization of business process, digital support for client advisory, modernization of communication channels, integration of bank and intermediary’s methods and systems, harmonization of IT-related services and reducing complexity in process, service and system environment. VP has focused its charitable donations to recreational sporting associations and cultural institutions serving the public.
VP Bank AG Zürich/Switzerland – Facts & Figures
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Address | Talstrasse 59, 8001 Zurich |
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Phone | +41 44 226 24 24 |
Website | www.vpbank.com |
Year of foundation | 1956 |
Subsidiaries | 6 |
No. of employees | 938.5 |
Rating | S&P A |
Chairman | Dr Thomas R. Meier |
CEO | Paul H. Arni |
Eligible Regulatory Capital | 1.014 bn CHF |
Tier 1 Ratio | 22.40 % |
Leverage Exposure | 13.758 bn CHF |
Leverage Ratio | 7.60 % |
Liquidity Coverage Ratio | 160 % |
Risk Weighted Assets | 4.535 bn CHF |
Loans outstanding | 6.237 bn CHF |
Assets under Management | 51.276 bn CHF |
Assets under Management / Employees | 54.636 m CHF |
Net profit | 50.6 m CHF |
Net Profit / Employees | 53’915 CHF |
Cost / Income Cost Ratio (CIR) | 71.70 % |
Return on Equity | 4.90 % |
Own structured products | No |
Foreigners accepted | Yes |
Presence abroad | Liechtenstein, Luxembourg, Singapore, Hong Kong, BVI |
Source: Annual Report 2021
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