VP Bank’s recovery is gaining traction, with net new money inflows of 1.4 billion Swiss francs in the first half of 2026, CEO Urs Monstein said in an interview. The annualized inflow of 5.2% was driven primarily by two segments: intermediaries—business with external wealth managers and trustees—and asset servicing, with Liechtenstein and Switzerland contributing the largest shares.
The bank’s cost base declined 5.3% year-on-year, while its cost/income ratio fell to 78.8%, a step toward its strategic target of a competitive ratio through sustained cost discipline and investment in profitable growth. Monstein emphasized that cost management remains an ongoing process, supported by automation and artificial intelligence, though regulatory demands continue to add overhead. The bank’s CET1 capital ratio stands at 26%, providing a strong capital buffer and supporting its credit ratings.
Monstein ruled out a specific cost/income ratio target but indicated that the ratio would continue to decline as the bank executes its strategy. He also dismissed the possibility of setting a threshold below 70%, noting that the pace of improvement depends on the timeframe and evolving business conditions. The bank is not pursuing acquisitions as an active strategy but would consider targets that align with its geographic footprint, client segment, culture and timing.
Asia remains a key focus, with Monstein reaffirming confidence in the region despite past restructuring. The bank plans to expand its intermediary business in Asia, leveraging its position as a niche intermediary bank to capture growth in the region. Luxembourg and Asia contributed to net new money inflows in the final two months of the first half, though Monstein cautioned that seasonality—particularly in trust structures—could affect second-half results. He expressed confidence the bank would meet its strategic corridor for the year based on its current pipeline.
Monstein acknowledged the challenges faced during the turnaround but highlighted the bank’s underlying health, strong management and workforce as foundations for progress. He dismissed any regrets about taking the helm, emphasizing a forward-looking approach to building on the bank’s renewed momentum.
