Vontobel Profit Edges Lower, Money Floods In
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Vontobel’s net profit edged lower despite a trading boom, but it will keep its shareholder payout steady. Its investment managers continued to haul in fresh money.
The Zurich-based bank’s net profit fell to 259.4 million Swiss francs ($291.1 million), from 266.1 million francs year-ago, it said in a statement on Thursday. The result was held back by spending to reinvent itself, and a higher tax rate than in 2019.
Vontobel’s income was virtually unchanged at 1.27 billion francs, after an 11 percent fillip from trading sparked by the pandemic offset a drop in commissions in fees and feeble interest income.
The bank took in 14.8 billion francs in new assets last year, two-thirds in its flagship asset management arm. It said it will pay out 2.25 francs per share to shareholders – unchanged from 2019.
Questions & Answers
Q.What caused Vontobel's net profit to decrease last year?
What caused Vontobel's net profit to decrease last year?
Net profit fell due to spending on a reinvention strategy and a higher tax rate compared to 2019. This offset the benefits from a trading boom and an influx of new client money.
Q.Did Vontobel's total income change significantly despite the profit drop?
Did Vontobel's total income change significantly despite the profit drop?
No, Vontobel's total income remained virtually unchanged at 1.27 billion francs. An 11 percent boost from trading activity during the pandemic balanced out lower commissions, fees, and weak interest income.
Q.How much new money did Vontobel attract into its operations?
How much new money did Vontobel attract into its operations?
Vontobel successfully attracted 14.8 billion francs in new assets during the last year. Two-thirds of this significant inflow was directed into its primary asset management division.
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