VP Bank reported a first-half 2026 net profit of 32.4 million Swiss francs, up 12.7% from the same period a year earlier, as cost reductions and commission income offset declines in interest-related revenue.
The group’s total operating income fell 2.2% to 171.6 million francs, reflecting a challenging interest-rate environment that weighed on net interest income. Commission and service revenue rose, while dividend income from financial investments also supported results. Trading and other income declined, shifting the bank’s revenue mix compared with 2025. In the first half of 2025, net interest income had already fallen 3.6% to 73.2 million francs, while commission income rose just 1.1% to 69 million francs. Trading income had then surged.
Cost discipline remained a key driver of profitability. Total operating expenses declined 5.3% to 135.2 million francs, with reductions in staff, administrative and other costs, as well as lower depreciation. The cost-to-income ratio improved by 2.7 percentage points to 78.8%, down from 81.5% in H1 2025 and 91.5% in H1 2024.
Customer assets under management increased 6.4% to 57.1 billion francs, driven by market performance and net new money inflows of 1.4 billion francs. This represents an annualized growth rate of 5.2%, below the unusually strong inflow of 2.1 billion francs in the first half of 2025, when managed assets totaled 51.9 billion francs. Total assets rose 7.3% to 11.5 billion francs, with the loan-to-deposit ratio at 61.3%.
Capitalization remained robust, with a Tier 1/CET1 ratio of 26.0% and a liquidity coverage ratio of 157.6%, well above regulatory requirements. The bank attributed progress to efficiency and growth initiatives launched in 2025.
Group CEO Urs Monstein highlighted the improved earnings structure, stating that despite a difficult interest-rate and currency environment, the bank had further increased profits.
Looking ahead, VP Bank expects a normalization in net new money growth in the second half of the year, with seasonally weaker business trends. Geopolitical risks, low interest rates and currency effects are expected to continue weighing on operations in 2026. Despite this, the bank said its strong capital base and lower cost structure position it well for the challenges ahead.
