VZ Holding AG: VZ Group remains on its growth path
August 11, 2017 at 12:55 am EDT
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EQS Group-Ad-hoc: VZ Holding AG / Key word(s): Half Year Results
VZ Holding AG: VZ Group remains on its growth path
11-Aug-2017 / 06:55 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
Press release
Source: VZ Holding AG / SIX: VZN / ISIN: CH0028200837
VZ Group remains on its growth path
Zurich, 11 August 2017 - Compared to the first half-year of 2016, VZ Group increased its revenues by 12.3 percent. Operating costs rose by 12.8 percent, leaving the operating margin virtually unchanged. Net profit increased by 9.3 percent. CEO Matthias Reinhart expects that thanks to the increased number of clients, revenues and profit will continue to grow throughout the year.
Revenues + 12.3 percent and net profit + 9.3 percent
VZ Group saw its revenues rise to CHF 127.8 million (+12.3 percent) during the first half of 2017 in year-on-year terms. Operating costs increased at broadly the same pace to CHF 71.1 million (+12.8 percent), resulting in an operating margin similar to that in the first half of 2016. Net profit reached CHF 44.2 million (+9.3 percent). The difference reflects the higher depreciation resulting from investment in the expansion of VZ Group's services and in their digitalisation.
Solid balance sheet
At CHF 2.3 billion, the balance sheet total has fallen slightly since the start of the year. The decline reflects more optimistic sentiment on capital markets. This encouraged clients to invest more, thereby reducing their cash holdings reported in the balance sheet. Even after the dividend distribution in the spring, VZ Group's equity capital remains constantly high.
Digitalisation
The launch of the group's financial portal last summer is beginning to generate positive results. In the long term, VZ expects an increasing number of clients to bundle all of their financial matters and to organise them electronically. This will give them an overview of all their investments and payment flows, their insurance policies, mortgages, taxes and their retirement provisioning. The growing range of services benefits both sides: With every service they use through this platform, clients save fees and premiums, while VZ expands its business opportunities.
VZ Depository Bank in Germany
The newly-founded VZ Depository Bank in Germany has received the approval of the Federal Financial Supervisory Authority as well as of the European Central Bank and is set to be launched. This will enable VZ Germany to begin transferring portfolio management clients from third-party banks to the in-house banking platform over the second half of the year. Meanwhile, the launch of its financial portal in Germany provides a good basis to attract new clients to the group's services.
Outlook
«VZ Group's future growth will be driven by the steady broadening of its client base», says Matthias Reinhart, Chairman of VZ Group's Executive Board. The number of clients establishing a long-term relationship with VZ rose by around 2000 in the first six months to reach approximately 31,000. Reinhart is expecting slightly less momentum from capital markets during the second half of the year and does not exclude substantial volatility. Overall, he expects revenues and profits to continue to grow, thanks to the higher number of clients. «This should allow us to increase the dividend for the business year 2017.»
Half-year report
The detailed half-year report as well as an investor presentation can be downloaded from the investor relations section on VZ Group's website: www.vzch.com.
Conference call
Media representatives and analysts are invited to discuss VZ Group's results in one of today's teleconferences hosted by Matthias Reinhart (Chairman of the Executive Board) and Philipp Marti (Chief Financial Officer). For details please get in touch with Adriano Pavone or Petra Märk:
Contacts
Adriano Pavone
Head Media Communications
Phone +41 44 207 25 22
Mail adriano.pavone@vzch.com
Petra Märk
Head Investor Relations
Phone +41 44 207 26 32
Mail petra.maerk@vzch.com
VZ Group
VZ is an independent Swiss financial service company, and VZ Holding Ltd's shares are listed on the SIX Swiss Exchange. Asset management, pension and estate planning for individuals as well as insurance and pension fund management for companies are VZ Group's core services. VZ Holding is headquartered in Zurich, and VZ has 30 branch offices throughout Switzerland and Germany. At the end of June 2017, the group counted more than 900 employees.
Forward-looking statements
This press release contains forward-looking statements that involve known and unknown risks, uncertainties or other factors that may cause the actual results to be materially different from any future results, performance, or achievements expressed or implied by such statements. Against the background of these uncertainties, readers should not rely on such forward-looking statements. The company assumes no responsibility to up-date forward-looking statements or to adapt them to future events or developments.
Key figures
Income statements (CHF '000)
1H 2017
2H 2016
1H 2016
Operating revenues
127'756
122'107
113'758
Operating expenses
71'086
65'658
63'002
Operating profit (EBITDA)
56'670
56'449
50'756
Net profit 1
44'164
43'700
40'424
1 Including minority interests.
Balance sheets (CHF '000)
30.6.2017
31.12.2016
30.6.2016
Total assets
2'320'945
2'434'598
2'332'821
Equity1
420'379
420'056
383'644
Net cash2
378'849
389'595
333'476
1 Including minority interests. 2 Cash & cash equivalents, short-term investments, marketable securities, financial assets less current liabilities due to customers, long-term debts and due to banks.
Equity key figures
30.6.2017
31.12.2016
30.6.2016
Equity ratio1
18.1%
17.3%
16.5%
Common equity tier 1 capital ratio (CET 1)
26.7%
27.9%
26.5%
Total eligible capital ratio (T1 & T2)
26.7%
27.9%
26.5%
1 Equity compared to the consolidated balance sheet total.
Funds under management (CHF million)
30.6.2017
31.12.2016
30.6.2016
Assets under Management
19'982
18'415
17'272
Employees
30.6.2017
31.12.2016
30.6.2016
Number of employees
915
892
830
Full-time equivalents
793.7
771.5
718.3
Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=CGDRJFVUDS Document title: Press release 11.08.2017 End of ad hoc announcement
VZ Holding AG is a Switzerland-based holding company engaged in the provision of financial advisory services. It advises individuals and companies on various aspects of investment, mortgage, tax, insurance, retirement and estate planning. The Company operates two business segments: private client segment and corporate client segment. The private client segment focuses on financial consulting and wealth management services, as well as banking services, aimed at wealthy private individuals aged 50 or over. The corporate client segment focuses on the consultancy activities relating to benefit planning, insurance and risk management, as well as cooperates within a framework of an insurance management mandate. The key service in this segment is the administration of pension fund solutions, as well as managing pension funds. The Company operates through wholly owned subsidiaries in Switzerland and Germany, as well as through a minority owned subsidiary Frueh & Partner Vermoegensverwalt AG.