VALIANT HOLDING AG Valiant increased consolidated profit to CHF 31.7 million, up 6.9% year on year. The operating result also kept up the momentum. Operating income climbed 11.8% to CHF 136.0 million, while operating profit rose 27.8% to CHF 57.0 million.
"I am delighted at this positive start to the year. We remain very successful at the operating level and are building seamlessly on the good result seen in 2023. This is a sure sign that our strategy is working. I would like to express my thanks to our customers for their loyalty and the trust they have placed in Valiant," said CEO Ewald Burgener.
Interest business remains strong
The gross result from interest business came to CHF 105.4 million, equivalent to an increase of 9.5% over the previous year. Net interest income stood at CHF 100.9 million, up 11.1% on the previous year. This positive performance came despite a decline in interest rates, and was due to the interest margin being higher than one year ago. In March 2024 the Swiss National Bank cut its benchmark rate 0.25 percentage points to 1.5%. Nevertheless, in the interests of clients Valiant decided not to cut rates either on savings and pension products or on payment accounts.
Higher income in the commission business and services
The result from commission business and services increased to CHF 22.2 million. This was a rise of 17.6%, driven by one-off recognition effects and adjustments to various commissions. Commission income from securities trading and investment activities climbed 8.5% to CHF 13.4 million. This change was due to higher custody account volumes and the positive performance of the financial markets.
Result from trading activities and other result from ordinary activities
The result from trading activities was CHF 11.6 million, an increase of 9.3%, primarily thanks to higher income from forward foreign exchange contracts. The other result from ordinary activities was steady.
Trend in operating expenses
Operating expenses climbed only marginally by 2.7% to CHF 73.7 million. On the one hand, personnel expenses were up as the expansion continued. On the other, the impact of the savings from the programme to increase profitability is now being felt in full.
Reserves for general banking risks strengthened
Given the positive trend in the operating result, CHF 15.0 million were allocated to the reserves for general banking risks in the first three months of the year. In accordance with the accounting rules for Swiss banks, reserves for general banking risks are classified in full as an element of equity capital. This strengthened Valiant's equity capital and raised the capital ratio to 16.2%, which is well above regulatory requirements. Valiant is convinced that strong capitalisation is in the interests of both clients and investors.
Total loans and customer deposits increased
Loans to customers stood at CHF 29.9 billion at the end of the first quarter, marking growth of 0.8%.
Valiant continues to ensure it has long-term funding. The three pillars of this strategy are customer deposits, central mortgage institution loans and covered bonds. Customer deposits rose slightly in the first quarter, up 0.2% to CHF 22.3 billion.
In early April 2024, Valiant placed CHF 400 million of covered bonds. These were backed by mortgages and had a term of eight years and a coupon of 1.55%.
Strategy 2020-2024 on track
In the final year of the strategic period up to the end of 2024, Valiant continues to pursue its strategy consistently. By opening 14 new branches, the bank has completed its geographic expansion from Lake Geneva to Lake Constance a year ahead of schedule. A total of 170 full-time equivalent (FTE) positions, including 140 for customer advisory service, will be created in the course of 2024 - about 130 FTEs had already been created by 31 March 2024.
Valiant again wins prestigious prizes for investment expertise
In a further demonstration of its investment expertise, Valiant again won several awards in spring 2024. Strategy fund Valiant Helvétique Conservative was nominated best fund in the "Mixed Asset CHF Conservative Fund over 3 years" and "Mixed Asset CHF Conservative Fund over 5 years" categories in the LSEG Lipper Fund Award Switzerland 2024. In the ranking produced by business magazine BILANZ, Valiant once more collected prizes in 2024. This time it won three: as number one regional bank, as a long-standing quality leader and as one of the best banks in Switzerland, labelled "Excellent".
Outlook
Valiant expects consolidated profit to be higher in the current year.
Key balance sheet figures
| 31/03/2024 in CHF millions | 31/12/2023 in CHD millions | Change as % | |
| Total assets | 36,527 | 36,080 | 1.2 |
|
Client loans - of which mortgage loans |
29,914 28,406 |
29,677 28,200 |
0.8 0.7 |
| Amounts due to clients | 22,259 | 22,220 | 0.2 |
Key income statement figures
| 31/03/2024 in CHF thousands | 31/12/2023 in CHF thousands | Change as % | |
| Gross result from interest operations | 105,382 | 96,225 | 9.5 |
| Result from commission business and services | 22,226 | 18,907 | 17.6 |
| Result from trading activities | 11,594 | 10,604 | 9.3 |
| Other ordinary income | 1,323 | 1,326 | -0.2 |
| Operating income | 136,044 | 121,647 | 11.8 |
| Operating expenses | 73,743 | 71,801 | 2.7 |
| Operating result | 56,961 | 44,586 | 27.8 |
| Consolidated profit | 31,741 | 29,692 | 6.9 |
Additional key figures
| 31/03/2024 | 31/12/2023 | Change as % | |
| Headcount (FTEs) | 1007.0 | 1003.3 | 0.4 |
Documents and information on the results are available at: valiant.ch/results
Images can be downloaded here: valiant.ch/downloads
Valiant will be providing details on the future strategy from 2025 on 13 June 2024. The main financial dates can be found at valiant.ch/calendrierfinancier.
Contact for the media
031 320 96 18
medien@valiant.ch
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Valiant Holding AG published this content on 03 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 May 2024 05:04:05 UTC.
