Half-year report at 30 June 2022

2

At a glance

Half-Year Report 2022 / Valiant Holding AG

At a glance

We continued on our growth trajectory and are on track with Strategy 2024 - this is reflected in our robust H1 2022 results.

CHF 222.0 million

Operating income

Despite value adjustments for credit risks of CHF 6.2 million, operating income was up 5.1%.

+2.5%

Client loans

Client loans rose by CHF 683.9 million to CHF 27.9 billion.

+0.8%

Funds due to clients Funds due to clients, which stood at CHF 22.3 billion, are Valiant's largest source of funding.

CHF 62.0 million

Consolidated net profit Consolidated net profit was up 1.3% on the prior-yearperiod.

15.8%

Total capital ratio Valiant has a solid capital base and substantially exceeds FINMA requirements.

3

Report by the Chairman and CEO

Half-Year Report 2022 / Valiant Holding AG

Valiant again records solid growth

Dear shareholders,

Valiant recorded growth in H1 2022, and our regional expansion remained on track. Our consolidated net profit came in at CHF 62.0 million, a rise of 1.3% on the year-earlier period. Operating income was up 5.1% to CHF 222.0 million, and operating profit increased by 2.3% to CHF 75.8 million.

Interest income still robust

Valiant remained strong in the interest business. Net interest income before value adjustments for credit risk was up 2.3% to CHF 173.4 million, while interest expense continued to decline sharply. In H1 2022, value adjustments for credit risk decreased by 8.9% to CHF 6.2 million. Net interest income for the period came in at CHF 167.3 million, a 2.8% rise on the year-earlier figure. We also launched our second covered bond programme, issuing an initial tranche in mid-June as part of a private placement. This enabled us to secure long-term funding on the capital market.

Well prepared for the interest rate turnaround

During the period, the Swiss National Bank initiated an interest rate turnaround by raising its policy rate. In response, we stopped charging our private and business clients negative interest starting already on 1 July 2022. In a demanding market environment, we stand out for our active treasury management. We also began preparing for the rise in interest rates well in advance.

Growth in fee and commission income

Fee and commission income increased by 13.3% to CHF 36.5 million. Commission income from securities trading and investment activities was up 5.4% to CHF 25.0 million, driven in part by higher income from asset management and custody fees.

Continued growth in loans and funds due to clients

We recorded growth of 2.5% in client loans, meaning that we had almost achieved our annual growth target of at least 3% by the end of the first six months of the year. Client loans stood at CHF 27.9 billion at end-June 2022. We also saw robust growth in funds due to both private and business clients. However, owing to the changing interest rate environment, CHF 334 million in fixed-term deposits were withdrawn by professional counterparties in June, resulting in a 0.8% rise in funds due to clients.

Programme to boost profitability

We continued to implement Strategy 2024 during the period. In February 2022, we added a sixth strategic aim, embarking on a programme to increase profitability. The programme is set to generate initial cost savings in 2022 and will lead to annual savings of CHF 12-15 million from 2024. We will achieve this by introducing cost savings and optimisation measures across the company.

We are on the right track and continue

to rigorously press ahead with

our Strategy.

4

Report by the Chairman and CEO

Half-Year Report 2022 / Valiant Holding AG

Two new branches

Our regional expansion from Lake Geneva to Lake Constance is continuing as planned. In H1 2022, we opened a branch in Wädenswil, our third location in the canton of Zurich, and one in Pully, which is now our biggest office in French-speaking Switzerland. Additional branches will be opened later this year in Winterthur, Meilen and Uster.

Between 2020 and 2024, we will open a total of 14 additional branches as part of our expansion strategy, creating 170 full-time equivalent positions, including 140 in client advisory services. Since 2017, 48% of the growth in client loans has come from new branches.

Markus Gygax, Chairman of the Board of Directors Markus Gygax was CEO of Valiant from November 2013 to May 2019. In May 2019, he was elected as a member of the Board of Directors. He has served

as Chairman of the Board of Directors since 13 May 2020. He likes to spend his free time with his family and enjoys playing sports outdoors.

Ewald Burgener, CEO

Ewald Burgener became CEO of Valiant on 17 May 2019, after more than six years as CFO. Before joining Valiant, Mr Burgener, who comes from the canton of Valais, worked at Entris Holding AG. He likes to spend his free time with his family. He plays squash and enjoys going to the mountains.

Corporate social responsibility

At Valiant, we have always taken a responsible, sustainable approach to our work. Our objectives and ambitions in that regard span all aspects of our business and apply to all of our stakeholders. When it comes to ensuring equal opportunities, promoting women is a key focus for Valiant. On 1 July, we became a member of Business and Professional Women (BPW) Switzerland, the country's largest network for women in business, supporting them in their professional, cultural and social initiatives.

Stable business trend expected

We have a solid capital and liquidity base and a robust business model, and we expect 2022 full- year net profit to be slightly above the prior-year figure.

These strong results show that we are on the right track with our strategy and that our clients continue to trust in us. During this challenging period, we remained focused on providing comprehensive advice and support to our clients.

We wish to thank you, our valued shareholders, for your ongoing trust.

Markus Gygax

Ewald Burgener

Chairman of the

CEO

Board of Directors

5

Consolidated balance sheet

Half-Year Report 2022 / Valiant Holding AG

Consolidated balance sheet

Assets

30.06.2022

31/12/2021

Change

Change

in CHF thousands

in CHF thousands

in CHF thousands

as %

Cash and cash equivalents

6,394,975

6,254,325

140,650

2.2­

Due from banks

68,458

69,719

-⁜1,261

-1.8­

Due from clients

1,513,255

1,535,401

-⁜22,146

-1.4­

Mortgage loans

26,414,259

25,708,253

706,006

2.7­

Trading portfolio assets

12,952

15,011

-⁜2,059

-13.7­

Positive replacement values of derivative financial instruments

275,443

57,834

217,609

376.3­

Financial investments

1,444,203

1,529,548

-⁜85,345

-5.6­

Accrued income and prepaid expenses

26,593

22,992

3,601

15.7­

Non-consolidated holdings

224,108

228,961

-⁜4,853

-2.1­

Tangible fixed assets

108,890

111,114

-⁜2,224

-2.0­

Intangible assets

0

0

0

0.0­

Other assets

11,821

27,171

-⁜15,350

-56.5­

Total assets

36,494,957

35,560,329

934,628

2.6­

Total subordinated claims

0

0

0

0.0­

of which subject to mandatory conversion and/or conditional write-off

0

0

0

0.0­

Liabilities and equity

Due to banks

3,016,325

2,632,053

384,272

14.6­

Client deposits

22,272,054

22,087,860

184,194

0.8­

Negative replacement values of derivative financial instruments

57,022

53,863

3,159

5.9­

Medium-term notes

38,508

50,889

-⁜12,381

-24.3­

Bond issues and central mortgage institution loans

8,212,700

8,078,500

134,200

1.7­

Accrued expenses and deferred income

128,332

138,623

-⁜10,291

-7.4­

Other liabilities

353,913

79,921

273,992

342.8­

Provisions

37,677

39,865

-⁜2,188

-5.5­

Reserves for general banking risks

34,786

34,786

0

0.0­

Share capital

7,896

7,896

0

0.0­

Capital reserve

592,596

592,613

-⁜17

-0.0­

Retained earnings reserve

1,681,129

1,640,335

40,794

2.5­

Treasury shares

0

0

0

0.0­

Consolidated net profit

62,019

123,125

-⁜61,106

n/a

Total equity capital

2,378,426

2,398,755

-⁜20,329

-0.8­

Total liabilities and equity

36,494,957

35,560,329

934,628

2.6­

Total subordinated liabilities

0

0

0

0.0­

of which subject to mandatory conversion and/or debt waiver

0

0

0

0.0­

Off-balance-sheet transactions

Contingent liabilities

141,476

140,056

1,420

1.0­

Irrevocable commitments

1,322,643

1,306,210

16,433

1.3­

Commitments relating to calls on shares and other equities

55,611

55,611

0

0.0­

Credit commitments

0

0

0

0.0­

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Valiant Holding AG published this content on 02 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 07:46:06 UTC.