Equity Story: VP Bank - Seize opportunities

Paul Arni · CEO · March 2021

VP Bank - Seize opportunities

The story behind the equity

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-madefinancial solutions for intermediaries' and private clients' needs.

VP Bank becomes an international open wealth service pioneer

VP Bank - Your experienced wealth management service partner

Our footprint

Historical comparison of our financial targets 2026

• Leading wealth management service partner in Liechtenstein

• Unique expertise and focus on intermediaries and private clients

• Highly responsive to client needs with direct access to

management

• International presence - five locations in dynamic financial

centres

• Fund competence centres in Liechtenstein and Luxembourg

Net new money (in % of AuM)

10.0%
8.0%
	Target:
6.0%
Ø 4.2%	>4% p.a.

4.0%

2.0%

0.0% -2.0% 2015 2016 2017 2018 2019 2020

-4.0%

Profit margin (in bp of AuM)

25

20
Ø 15.35 bp		Target: >15 bp
15
10
5
0
2015	2016	2017	2018	2019	2020

• Proven track record as a basis for further profitable growth
• Strong balance sheet and capitalisation (Tier 1 ratio >20%)
• Excellent rating (S&P Rating A)
•	Attractive and stable dividend
•	Stable shareholder base ensuring continuity and independence

Cost / income ratio1)				Tier 1 ratio
88%								30.0%
84%								27.0%
80%								24.0%
Ø 79.0%					Ø 23.2%
76%						one-time21.0%
						excl.
							valuation
72%					Target: 70%	adjustment 18.0%	Target: >20%
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

1

Strong

foundation

4

Move

innovation

2

Evolve

business

3

Scale

potential

Strengthen robustness of our organisation and the skills of our people and form a unique entrepreneurial culture

Drive the strategic ambitions and profitable growth of our international locations and networks through empowered market focus and functional management

Enhance operational architecture to cope with future growth and develop a wealth management service provider platform

Expand business lines by generating new wealth management solutions using modular approach models and value-addingpartnerships

5