VP Bank - Seize opportunities - Paul Arni CEO March 2021 The story behind the equity - VP Bank Luxembourg
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Paul Arni · CEO · March 2021
VP Bank – Seize opportunities
The story behind the equity
1
Our clients benefit from wealth management opportunities in a changing world
VP Bank builds on many years of experience and strength in rendering services to professional financial service
providers. On the basis of this specialised knowledge and VP Bank’s excellent network, we develop tailor-made
financial solutions for intermediaries’ and private clients’ needs.
VP Bank becomes an international open wealth service pioneer
2
VP Bank – Your experienced wealth management service partner
Our footprint Historical comparison of our financial targets 2026
Net new money (in % of AuM) Profit margin (in bp of AuM)
• Leading wealth management service partner in Liechtenstein 10.0% 25
• Unique expertise and focus on intermediaries and private clients 8.0% 20
Target: Ø 15.35 bp Target: >15 bp
6.0%
Ø 4.2% >4% p.a.
• Highly responsive to client needs with direct access to 4.0%
15
management 2.0% 10
0.0% 5
• International presence – five locations in dynamic financial 2015 2016 2017 2018 2019 2020
-2.0%
centres 0
-4.0% 2015 2016 2017 2018 2019 2020
• Fund competence centres in Liechtenstein and Luxembourg
• Proven track record as a basis for further profitable growth Cost / income ratio1) Tier 1 ratio
• Strong balance sheet and capitalisation (Tier 1 ratio >20%) 88% 30.0%
• Excellent rating (S&P Rating A) 84% 27.0%
80% 24.0%
• Attractive and stable dividend Ø 79.0% Ø 23.2%
76% excl. one-time 21.0%
• Stable shareholder base ensuring continuity and independence 72%
valuation
adjustment 18.0% Target: >20%
Target: 70%
68% 15.0%
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
1) total operating expenses / total operating income
3
Our heritage and experience provide a strong basis for adapting to and
exploring emerging industry trends …
We evolve and scale our business … … and seize new opportunities …
Wealthy individuals, a growing demographic API-zation drives ecosystems and leads to greater
(+9% in 20191)), continue to seek a trusted specialisation and disintegrated value chains
wealth management partner (fintech investments +22% p.a. since 20144))
Wealthy individuals require personalised advice, … based on our Data analytics and AI offer better
supported by seamless digital customer journey key expertise, network understanding of customer needs
(71% prefer multichannel interaction2)) and strengths:
Increasing regulatory requirements Capital Digitisation will allow us to offer
Efficiency even more personalised client services
A sound balance sheet and solid capitalisation Smart growth Shifts into new asset classes makes
are vital to maintain confidence and develop Innovation tokenisation bankable (USD 3.1 bn in
qualitative, sustainable growth blockchain investments5))
Standard services being commoditised and ESG purpose investing is top of the agenda
dominated by players with E2E digitised processes (ESG AuM growth 2018 to 2019 +440%6))
(EU private banks –23 basis points [bps] since 20073))
1) Source: Capgemini – Growth HNWIs with investable assets > USD 1 mn.
2) Source: McKinsey – 71% of private banking clients prefer multichannel interaction.
3) Source: McKinsey.
4) Source: KPMG.
5) Source: CB INSIGHTS – USD 3.1 bn of funding for companies in the blockchain space in 2019.
6) Source: KPMG.
4
… captured in the four main pillars of our Strategy 2026
Strengthen robustness of our organisation and the skills of our people and form
1
Strong
a unique entrepreneurial culture
foundation
Drive the strategic ambitions and profitable growth of our international
2
Evolve
locations and networks through empowered market focus and functional
management
business
3 Enhance operational architecture to cope with future growth and develop a
wealth management service provider platform
Scale
4 potential
Move
innovation Expand business lines by generating new wealth management solutions using
modular approach models and value-adding partnerships
5Financial foundation – Good operating performance and solid capital based
on 2020
Group net Tier 1 ratio
income 20.8%
CHF 41.6 million 20.1% in 2019
CHF 73.5 million
in 2019 Very good
equity base
Net income Impacted by the Net new money
before valuation valuation adjustment of inflow Stable
one individual position Rating:
adjustments in the loan portfolio
CHF 1.4 billion key balance
Standard & Poor’s
CHF 61.0 million CHF 2.1 billion in 2019 sheet figures
A/Negative/A–1
CHF 66.8 million Cost / income
in 2019 Continued good
ratio inflow in a Confirmed as of
Lower USD interest
69.3% challenging market 17 July 2020, outlook
rates, reduced costs 67.6% in the previous environment reduced to negative
year
Figures as of 31.12.2020 6VP Bank becomes an international open wealth service pioneer
7We build our future on comprehensive wealth management services for
professional financial service providers and private clients …
Intermediaries – fiduciaries, external asset managers and family offices
Tailored service platform and personalised relationship management
Intermediaries & • Investment advisory trade services, asset management, tax and regulatory
advisory services, comprehensive e-services, VP fund solutions
Private Banking
• Flexible and open interfaces for seamless system integration
CHF 36.0 bn in AuM1)
• Personalised advice with access to third party providers
Private Banking – wealthy individuals
Complete service platform, digital solutions and personalised client advisory services
International Open
Wealth Service • Private wealth management and focused holistic wealth planning, investment
advisory services, financing, securities trading, comprehensive e-services, retail
Pioneer and commercial in our home market
• Personalised advice with access to an open product platform
Client Solutions – curator for privat market access
Client Solutions Advanced service solutions, new asset classes and partner ecosystem
• Sourcing of investment opportunities, comprehensive fund solutions, access to
CHF 13.8 bn in AuA2) global networks and specialists, structuring vehicles, white and private label funds
• Modular access and structuring platform
• Open banking access to collective and direct private market investments
1) Assets under management as of 31.12.2020. 2) Assets under advice as of 31.12.2020
8… as an international open wealth service pioneer
9VP Bank is transforming into an open platform enabling more efficient cooperation
Target enterprise architecture Threefold Approach
Growing Buying a
End client Do good Save time
wealth yacht
needs (not Buying a Generational Save for Human centered approach to develop
exhaustive) house handover retirement I client centric and network enabled
value propositions / journeys…
Client
Ecosystem Relationship Client
interaction Direct Intermediary
partners Manager Solutions
channels
Portal layer Client portal RM portal
… enabled by an open and modular
Integration II
layer
VP Bank's wealth management service platform IT architecture platform…
VP Bank VP Bank Third-party Third-party
Production &
as custodian as product and as product and custodians
service layer
service provider service provider
III … and supported by outsourced &
Infrastructure IT infrastructure efficient IT infrastructure.
layer
Client journey example 10Execution of Strategy 2026 follows through clearly defined initiatives
Target Key measures
• Building on regional strengths and market opportunities
Strategic further development
• Seizing opportunities in Asia through organic growth and partnerships
of the operational business at
• Empowering client advisors to increase focus on client relationships
the existing locations
Evolve • Integrating sustainability in our offering
•• Increasing
Increasing efficiency
efficiency through
through process
process optimisation
optimisation and
and enhanced
enhanced digital
digital services
services
Optimisation
Optimisation and
and scaling
scaling of
of •• Scaling and sourcing of services
Scaling and sourcing of services
Bank-wide
Bank-wide processes
processes and
and •• Increasing
Increasing the
the bank’s
bank’s robustness
robustness and
and agility
agility
structures
structures
Scale •• Offering
Offering our talents new perspectives through
our talents new perspectives through entrepreneurial
entrepreneurial mind-set
mind-set
•• Providing
Providing access
access to
to private
private market
market investments
investments via
via ORBIT
ORBIT platform
platform
Taking
Taking advantage
advantage of
of new
new •• Untapping
Untapping new
new asset
asset classes
classes through
through digitization
digitization of
of assets
assets (tokenization)
(tokenization)
business
business opportunities
opportunities •• Leveraging
Leveraging data
data analysis
analysis to
to increase
increase relevance
relevance of
of investment
investment advice
advice
Move
•• Developing
Developing new
new business
business models
models powered
powered through
through ecosystem
ecosystem partners
partners
11Deep Dive: Evolve – Develop and expand existing business locations
building on regional strengths and market opportunities
Luxembourg Liechtenstein
In the Nordics and Germany In our home market, we offer a
we provide wealthy individuals with state-of-the-art service platform
cross-boarder wealth services and to intermediaries, holistic
intermediaries with holistic wealth- advice and private market
advice expertise, comprehensive investment solutions to wealthy
fund solutions and ESG products individuals as well as selected
and services services to retail and Singapore and
BVI
commercial banking clients Hong Kong
In BVI, we act as a
premier quality property In Asia, we offer a state-of-the-
financer and partner for art service platform to
global investors and intermediaries and provide
family office networks wealth management advice to
wealthy individuals including
Switzerland
structuring solutions and
As in Liechtenstein, we offer access to offshore investment
a state-of-the-art service opportunities
platform to intermediaries
as well as holistic advice
and private market
investment solutions to
wealthy individuals
12Deep Dive: Scale – Build a digital platform that provides efficient, flexible and
convenient wealth management services
13Deep Dive: Client Solutions – Curator for private market opportunities
• Modular, open architecture access and structuring
platform for private market investment products
• Embedded in a broad community of partners
• Connection to ORBIT at each stage of the value chain
• Origination and distribution of investment
opportunities through the ORBIT ecosystem
14Financial targets 2026 – Increase in Group net income to CHF 100 million
Growth Profitability Stability
Net new money Profit- Cost / Tier 1
(in % of AuM) margin income ratio
(in bp of AuM) ratio2
> 4% p.a.1 > 15 bp 70% > 20%
1 Over the 2021–2026 cycle. 15
2 Operating expenses / operating income.Outlook for 2021 – Clear milestones despite challenges to predict
First half of 2021 Second half of 2021 > 100 million
> 100 million
• Sourcing partner for IT • Systematic access to
infrastructure selected private market
• Start of the international investments through
open wealth service Client Solutions
pioneer transformation • Rollout of impact
• Implementation of joint investing solutions
activities according to
partnership agreement
with Hywin
41.6 million
2020 Net profit curve 2026
16VP Bank is a strong proposition to investors
Attractive and well-defined growth Strategy 2026 to seize VP Bank shares show great track record and attractive dividends
opportunities
Share price compared to peers Dividends
300 6.0 65%
5.5 5.5 5.5
• Strong management team with clear growth ambitions 250 5.5 60%
200 5.0 55%
• Three pillars to structure a balanced portfolio
Rebased
4.5 50%
150 4.5
4.0 45%
100 4.0
• Geographically diversified footprint in attractive financial centres 3.5
4.0 40%
50 35%
• Solid capital base above international standards: tier 1 ratio 20.1% - 3.0 30%
2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
• Target profit CHF 100 mn by 2026 and clear financial targets VP Bank LLB Vontobel Julius Bär EFG Dividends in CHF Payout ratio in %
• Stable and long-term-oriented shareholder base and free float of
approximately 45% Capital structure as of 31.12.2020
• Sustainable and crisis-resistant dividend with payout target range
Free-float
of 40% to 60% 23.0%
Guido Feger Foundation
• Highly collateralised credit portfolio (93% collateralised by 741 mn Marxer Foundation
46.8%
mortgages or Lombard, respectively) and low risk profile CHF2) 11.4% U.M.M. Hilti-Foundation
• Symbol SIX: VPBN | valor number: 31 548 726 | ISIN: Shares in nostro portfolio by VP Bank
9.7%
LI0315487269 | Reuters ticker: VPBN.S | Bloomberg ticker: VPBN 8.5% Other1)
0.6%
1) Other: Group Executive Management: 0.1%; Board of Directors: 0.3%; pension funds: 0.2%. 2) Market capitalisation.
17A management team with a combined financial services experience of well over
a 100 years
5 1 2 3 6
4
1 Paul Arni, CEO, a leading wealth management expert with long-standing banking and management experience, both in the front office and the
back-office field
2 Tobias Wehrli, Head Intermediaries & Private Banking, a senior executive with a strong track record and long-standing experience in the asset
management business and the intermediaries field
3 Thomas von Hohenhau, Head Client Solutions, an innovative international banking and fintech leader with broad experience in open banking
platforms, portfolio management and scaling of business models
4 Patrick Bont, CRO, former Head of Banking Division at FMA, with extensive risk management, legal and compliance, digitisation and financial
market regulation track record
5 Urs Monstein, COO, internationally experienced expert in banking with in-depth expertise in the development and management of effective
banking processes and digital solutions
6 Roger Barmettler, CFO, an experienced financial leader with international management experience in finance and risk in the finance industry
18Contacts and agenda
Investor Relations Disclaimer
Paul H. Arni, Chief Executive Officer Although the greatest possible care was taken when preparing this documentation, we
Roger Barmettler, Chief Financial Officer are unable to guarantee that the information contained herein is complete, up to date or
accurate. The information in this documentation is provided for information purposes
only and should not be construed as an offer, solicitation of an offer, or public solicitation
Contact requesting transactions in certain financial instruments or services. In particular, this
documentation does not constitute investment advice and does not take account of
Rudolf Seuhs, Senior Corporate Communications Manager specific or future investment objectives, financial or tax circumstances or other special
T +423 235 65 22, F +423 235 66 20 needs of an investor. Similarly, depending on the nationality or domicile of an investor,
there may be legal restrictions on transactions in financial instruments or the use of
investor.relations@vpbank.com services. Before an investor makes an investment decision or uses services, he should
www.vpbank.com Investor Relations seek advice from his client advisor. The value and returns of financial instruments may go
up as well as down. It is possible that an investor will not get back the amount originally
invested. Past performance is not a reliable indicator of future results. Each financial
Agenda instrument may be subject to the following non-exhaustive risks: Issuer (creditworthiness
risk), market risk, credit risk, liquidity risk, interest rate risk, currency risk, economic and
• Annual general meeting of shareholders 2021: 30 April 2021 political risks. More details about these risks can be found in the brochure "Risks in
• Ex-dividend date: 4 May 2021 Securities Trading" of the Liechtenstein Bankers Association, which is available under
www.bankenverband.li. Liability for all damages or losses claimed on the basis of the
• Record date: 5 May 2021 information contained in this documentation is excluded. This document is protected by
• Dividend payment: 6 May 2021 copyright and use for purposes other than private is subject to our prior consent.
• Semi-annual results 2021: 17 August 2021
© VP Bank Ltd
Aeulestrasse 6 · 9490 Vaduz · Liechtenstein · T +423 235 66 55 · F +423 235 65 00
info@vpbank.com · www.vpbank.com · VAT No. 51.263 · Reg. No. FL-0001.007.080-0
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