Vontobel delivers solid results in a challenging market environment

• Assets under management were higher at CHF 233 billion
• Net new money totalled CHF 2.0 billion, driven by very strong Private Clients result and a turnaround in Institutional flows during the second quarter
• Cost/income ratio slightly higher at 77.9 percent and profit before tax down 15 percent to CHF 148 million, impacted by sharp decline in dollar and lower interest rates and normalizing after a record trading performance in the first half of 2024
• Efficiency program on track leading to lower cost base
• Strong capital position with a CET1 ratio of 16.7 percent after absorbing Basel III requirements and recent acquisitions

 

Vontobel delivered solid results over the past six months, against a challenging market backdrop, characterized by geopolitical uncertainty, a sharp decline in the US dollar and lower interest rates. The firm is focussed on its strategic priorities and is well positioned to achieve its targets.

Assets under management slightly higher

Assets under management increased to CHF 233 billion, compared to CHF 229 billion at the end of 2024. Positive net new money (CHF +2.0 billion) and market performance (CHF +11.3 billion, including the CHF 1.8 billion from IHAG) were largely offset by negative FX impact (CHF -9.1 billion), mainly due to a much weaker US dollar vs. the Swiss franc.

Positive net new money

Net new money totalled CHF 2.0 billion overall. In the Private Clients segment, net new money reached CHF 3.3 billion, representing a 6 percent annualized growth rate—at the top end of Vontobel’s through-the-cycle target range. Institutional Clients saw CHF 1.8 billion in outflows over the last six months, reflecting a challenging market environment for active managers particularly in the first three months of the year. In the second quarter, this trend began to shift, and Institutional Clients flows turned positive, driven by Fixed Income and Equity Solutions.

Resilient operating income

Operating income was at CHF 689 million (-5 percent year-on-year), driven by lower interest rates and a sharp decline in the US dollar, partially offset by higher revenues from fees and commissions. While trading results were below last year’s record, they remained strong. Despite the market turbulence in April, Vontobel demonstrated resilience, underpinned by the firm’s conservative risk appetite.

Lower cost base

The firm’s cost-income ratio of 77.9 percent reflects a year-on-year reduction in operating expenses of CHF 14 million, while continuing to invest in strategic growth initiatives. The 100 million efficiency program is on track and is expected to run until the end of 2026.

Delivering on priorities 

The integration of IHAG Private Bank’s clients and employees was completed ahead of schedule. Vontobel continues to strengthen its operational infrastructure, including an upgrade of its core banking system, which will allow more scalable growth. Driven by evolving client needs, Vontobel made its debut in the active ETF market with its first launch in the US. The firm also broadened its tailored solutions offering with the launch of a European Equity Income product and expanded its offering in private markets with the launch of an asset-backed finance fund.

Strong capital base and balance sheet 

Vontobel placed an inaugural public CHF 200 million senior unsecured bond, which attracted strong investor demand. This transaction adds diversification to the company’s funding structure. The firm maintains a strong capital position, exceeding all regulatory minima, as well as its own through-the-cycle targets. As of the end of June 2025, the CET1 ratio was at 16.7 percent and the Tier 1 ratio at 21.0 percent.