Swiss banking group Vontobel has seen a 34 percent increase in pre-tax profit for its combined wealth management (CWM) unit in 2017 to stand at CHF 62.5 million.
CWM attracted CHF 2.2 billion of net new money, corresponding to growth of 4.7 percent, within the target range of four to six percent. Vontobel attracted CHF 2.6 billion of net new money in higher-margin products in wealth management, including portfolio management mandates and advisory mandates, also exceeding the target range of four to six percent.
Outflows were recorded in lower-margin products, including securities trading and custody. The acquisition of the Eastern European client portfolio of Notenstein La Roche generated additional growth, providing Vontobel with around CHF 2 billion of assets under management (AUM). In addition, Vontobel now also has a team in New York to serve US clients. Advised client assets in CWM totaled CHF 54.0 billion at the end of 2017, reaching a new record level.
As a whole, adjusted net profit, excluding acquisition costs and a one-off tax impact due to the US tax reform, for the group totaled CHF 217.9 million, exceeding the previous year by 12 percent.This result was driven by growth achieved while making significant investments in new markets, talent, technology and the Vontobel brand, according to the group.
Advised client assets reached a new record level of CHF 186.6 billion. This corresponds to an average annual increase of 12.5 percent over the last four years. The net inflow of new money at group level was CHF 5.9 billion.
Asset Management remains Vontobel’s strongest earnings driver, achieving its most profitable six-month period ever in the second half of 2017. For the full year 2017, pre-tax profit totaled CHF 162.8 million. AUM grew to CHF 110.3 billion, an increase of 20 percent compared to the previous year.
Vontobel provides wealth management, active management and investment solutions throughout 21 offices worldwide with more than 1,700 employees.