VP Bank reported a first-half 2026 net profit of 32.4 million Swiss francs, a 12.7% increase from the same period a year earlier, as cost discipline and commission growth offset a challenging rate environment.
The bank’s operating income fell 2.2% to 171.6 million francs, reflecting continued pressure on net interest income amid low rates. Commission and service revenue rose, fully compensating for the 3.6% decline in interest income to 73.2 million francs. Dividend income from financial investments also supported results, while trading and other income declined.
Costs continued to fall, with total expenses down 5.3% to 135.2 million francs. Personnel, administrative and depreciation expenses all decreased, pushing the cost-to-income ratio to 78.8% from 81.5% a year earlier. The bank’s CET1 capital ratio strengthened to 26.0%, while its liquidity coverage ratio stood at 157.6%, well above regulatory requirements.
Client assets under management rose 6.4% since year-end 2025 to 57.1 billion francs, driven by market gains and net new money inflows of 1.4 billion francs, translating to an annualized growth rate of 5.2%. The inflow was slower than the 2.1 billion francs recorded in the first half of 2025, when assets reached 51.9 billion francs at midyear. Total assets grew 7.3% to 11.5 billion francs, with the loan-to-deposit ratio at 61.3%.
Group CEO Urs Monstein highlighted the improved earnings structure despite a difficult rate and currency backdrop. The bank expects second-half business to soften seasonally and warned of ongoing pressure from geopolitical risks, low rates and currency effects. It reiterated plans to maintain cost discipline and capitalize on its strong capital position.
