VZ Holding AG: VZ Group increases earnings by 6 percent Freitag, 28. Februar 2020 - 06:51
VZ Holding AG / Key word(s): Annual Results VZ Holding AG: VZ Group increases earnings by 6 percent
28-Feb-2020 / 06:50 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 KR The issuer is solely responsible for the content of this announcement.
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Press release
Source: VZ Holding AG / SIX: VZN / ISIN: CH0028200837
VZ Group increases earnings by 6 percent
Zurich, 28 February 2020 - VZ Group increased its operating revenues by 6.2 percent to CHF 301.7 million. After stagnating in the first half of the year, profits rose by 4.1 percent to CHF 102.3 million over the year as a whole. The dividend is to be increased from CHF 4.90 to CHF 5.10 per share. CEO Matthias Reinhart expects further growth in revenues and profit for the 2020 financial year.
6.2 percent higher operating revenues As expected, the positive mood in the second half of the year was reflected in both operating revenues and profit. After a slow first half of the year, earnings rose by 6.2 percent to CHF 301.7 million over the year as a whole. The slower growth compared to the previous year is due to the fact that revenues from assets under management develop with a time lag. In addition, bank revenues remain under pressure.The trend towards passively managed portfolios and all-in management fees leads to lower trading and transaction revenues. After stagnating in the first half of the year, profit rose by 4.1 percent to CHF 102.3 million over the year as a whole.
5000 additional management clients VZ Group has again advised a large number of new clients, and many of them have opted for one of its management services. With 5000 additional management clients, VZ Group achieved a new record. At the same time, the number of services used by existing clients is steadily increasing. VZ Finanzportal, which enables clients to manage their assets conveniently online - including insurance policies, mortgages and much more - also contributes to this development. Net new money grew by 5.5 percent to CHF 2.7 billion in 2019.
Higher balance sheet total and dividend The balance sheet total increased from CHF 3.1 to 4.1 billion in 2019. This is due to the growing number of clients and the higher cash holdings per client. Despite the growing balance sheet total, the core capital ratio is a solid 27.7 percent. The Board of Directors will propose to the annual general meeting an increase in the dividend from CHF 4.90 to CHF 5.10 per share. As in the previous years, some 40 percent of the profit will thereby be distributed to the shareholders. Over the next couple of years, the Board of Directors intends to gradually increase the payout ratio to up to 50 percent. In addition, the Board proposes a share split in the ratio of 1:5.
Outlook «Provided that the financial markets remain stable, revenues should continue to grow in the current year», says Matthias Reinhart, Chairman of VZ Group's Executive Board. «Profit growth in particular is expected to improve because the tax burden will decrease again.»
Annual report The detailed annual report as well as an investor presentation can be downloaded from the investor relations section on VZ Group's website: 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 Rafael Pfaffen (Chief Financial Officer). For details, please get in touch with Adriano Pavone or Petra Märk:
Contacts
Adriano Pavone Petra Märk Head Media Communications Head Investor Relations Phone +41 44 207 25 22 Phone +41 44 207 26 32 Mail adriano.pavone@vzch.com Mail petra.maerk@vzch.com
Alternative performance measures To measure its performance, VZ Group uses key figures that are not defined under International Financial Reporting Standards (IFRS). These alternative performance measures are listed on page 174 of the Annual Report 2019.
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 34 branch offices throughout Switzerland and Germany.
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 update forward-looking statements or to adapt them to future events or developments.
Key figures
Income statements (CHF '000) 2019 2018 Operating revenues 301'718 284'188 Operating expenses 159'340 157'004 Operating profit (EBIT) 124'750 116'764 Net profit 102'305 98'246 Balance sheets (CHF '000) 31.12.2019 31.12.2018 Total assets 4'056'231 3'087'945 Equity 549'774 512'266 Net cash 432'380 439'543 Equity key figures 31.12.2019 31.12.2018 Leverage ratio 13.6% 16.6% Common equity tier 1 capital ratio (CET 1) 27.7% 30.1% Total eligible capital ratio (T1 & T2) 27.7% 30.1% Funds under management (CHF million) 31.12.2019 31.12.2018 Assets under management 27'627 23'056 Employees 31.12.2019 31.12.2018 Full-time equivalents (FTE) 944.8 897.5
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End of ad hoc announcement
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