VP Bank profits wane in the first half of 2022 due to a challenging market environment.
Liechtenstein-based VP Bank’s profits fell to 21.3 million Swiss francs ($22.4 million) in the first half of the year, representing a 29 percent drop over the same period last year, it said in a statement Wednesday.
VP Bank's operating income declined by 3 percent year-on-year to 161.5 million francs, which was mainly attributable to lower transaction-based revenues in the commission and services business.
At the same time, operating expenses rose 5 percent year on year to 138.4 million francs. These were driven by investments in the bank’s «Strategy 2026» and the resulting write-downs, higher IT costs, as well as by extraordinary costs caused by processing and implementing sanctions with Russian customers, it said.
Target Review
VP Bank stands by its long-term ambitions and Strategy 2026 but is reviewing its financial targets at the end of the strategy cycle, in view of the changed market conditions, it said.
«The current market environment continues to require great attention, but also holds opportunities. VP Bank has the expertise and the financial stability to seize them,» CEO Paul H. Arni added.
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