Vontobel is adapting its business model to meet future demands and highlighted plans to step up services for external asset managers in Asia. The Zurich-based bank reported positive results for 2019.
During its latest financial results, Vontobel reported net new money of 11.7 billion francs, an increase of 6.9 percent, which is in excess of its target range. Assets under management added 17 percent to 226.1 billion francs, underlining asset management as the strongest business division.
The bank will cease to work along current division lines and group its activities in accordance with client demand. «As a pure-play investment manager, we want to swiftly and actively seize the opportunities for growth resulting from the increasing demand for professional solutions across all client groups and from changes in client behavior,» said Vontobel's Chief Executive Zeno Staub. «With our focused approach, we want to continue to set Vontobel apart from our competitors in the future.»
Stepping Up In Asia
As part of its growth plans for the year, Vontobel will expand services for financial intermediaries such as External Asset Managers (EAMs), banks and securities dealers, as well as multi-family offices that are bundled in Platforms & Services. This is an area in which the group has identified growth potential not only in its Swiss home market but especially also in Germany and Asia.
In particular, Vontobel highlighted plans to grow its business with EAMs in Singapore. Last year, Vontobel in Singapore was granted a new license, enabling it to strengthen its activities related to EAMs and multi-family offices in this region.
Profit Positive
Overall, group net income at Vontobel increased 14 percent to 265.1 million Swiss francs ($271.6 million) in 2019, the company said in a statement on Wednesday. Adjusted for one-off exceptional items such as integration costs related to Notenstein La Roche, profit amounted to 258.9 million, an increase of 4 percent compared with the year-earlier adjusted result.
They delivered what it called a «good result» despite a challenging operating environment, with low-interest rates, geopolitical uncertainties, low transaction volumes, and strong competition.
Restructuring Plans
Private banking by contrast – what Vontobel calls the combined wealth management – had net new money of half a billion francs last year, an increase of 0.8 percent year-on-year. Still, the business managed to keep the margin stable and increased its pretax profit by 21 percent to 147.4 million francs. The financial products unit was busy defending its market share. Its pretax amounted to 47.2 million francs.
In December, Staub had announced his restructuring plans for the bank. Vontobel in the future will be a so-called pure-play investment manager, a technology-driven provider of investment-advice and –solutions.
