Vontobel (VONN) Q4 2024 earnings summary

Executive summary

• Profit before tax rose 32% to CHF 354 million, with profit after tax at CHF 266 million and group net profit up 24% year-over-year, driven by strong revenue growth and strategic progress.

• Achieved positive net new money growth of CHF 2.6 billion after two challenging years, with assets under management increasing 11% to CHF 229 billion.

• Operating income grew 9% to CHF 1,423 million, with both private and institutional client segments contributing.

• Efficiency program delivered CHF 45 million in exit rate savings, reducing the cost/income ratio by nearly 5 percentage points to 74.7%.

• Completed two strategic acquisitions: Ancala (private infrastructure) and IHAG (ultra-high-net-worth clients).

Financial highlights

• Profit before tax increased by 32% to CHF 354 million; profit after tax reached CHF 266 million.

• Revenues rose 9% to CHF 1.42 billion, with net fee and commission income up 6% and trading/other income up 38%.

• Assets under management grew 11% to CHF 229 billion, with CHF 2.6 billion in net inflows.

• Return on equity improved to 12.3%; return on CET1 capital at 22.1%.

• Basic EPS increased 23% to CHF 4.76; tangible book value per share up 10% to CHF 29.40.

Outlook and guidance

• Operating income and net new money growth targets set at 4–6% through the cycle.

• Return on equity target above 14%, cost/income ratio target below 72%, and CET1 ratio target above 12%.

• Expect tax rate to normalize to 22%-23% in 2025 and 20% longer term.

• Committed to delivering CHF 100 million in efficiency savings and maintaining a strong capital position.

• Continued focus on efficiency, digital platforms, and expanding private markets and customized solutions.