Swiss Vontobel bank saw a substatial increase in profit last year thanks to strong asset management. Client assets have reached a new record high. The dividend will be increased.
In 2015, Vontobel increased net profit by 34 per cent to 180.1 million francs. The results were so strong mostly due to growth in asset management and structured products, the bank announced Thursday.
Asset management brought in a pre-tax profit of 139 million francs, while financial products delivered 62 million francs in profit. In wealth management, pre-tax profit was down 18 per cent at 61 million francs. The bank invested in hiring more client advisors but negative interest rates also hit results.
Increase in Net New Money
Client assets increased by 16.1 billion francs in total, organic growth accounting for 8 billion. Vontobel acquired the fixed-income specialist Twentyfour Asset Management as well as the private bank Finter in 2015.
In wealth management, advised client assets increased to 42.5 billion francs. In total advised client assets reached a new record of 147.8 billion.
Vontobel said it has successfully navigated the market turmoil of the first weeks of the year. The board will propose an increased dividend of 1.85 francs per share, up 19 per cent.
