New bank exceeds 6 billion customer assets for the first time – Liechtenstein
VADUZ – According to its own statements, the Neue Bank achieved a profit of CHF 7.6 million and an inflow of new money of CHF 336.2 million in 2021. Client assets under management have increased to CHF 6.5 billion. The Board of Directors will propose a dividend of 16 percent on the share capital at the Annual General Meeting.
Neue Bank grew under its own steam in 2021 and increased its profit to CHF 7.6 million. They thus recorded results that were above both the previous year and the budgeted targets. For the first time, customer assets would have exceeded the 6 billion franc threshold. According to the broadcast, as of December 31, 2021, this was CHF 692.3 million or 11.9 percent higher than in the previous year, reaching CHF 6.5 billion. Neue Bank benefited from a strong net new money inflow of CHF 336.2 million.
Different results depending on the area
The main source of income was the commission and service business with a significant increase of 15.6 percent to CHF 18.7 million. On the other hand, the deteriorating interest margin is making itself felt in the results of the interest business (including income from securities), writes the Neue Bank. Here the result was down 18.4 percent to 4.5 million Swiss francs. Income from financial transactions, at CHF 5.7 million, was also 14.8 percent down on the previous year. Overall, however, business income increased by 1.5 percent to CHF 29 million. Operating expenses of 19.1 million were below target and slightly above the previous year’s expenses by 0.3 percent. The cost-income ratio improved to 65.7 percent compared to the previous year.
The Board of Directors will propose a dividend of 16 percent on the share capital and an allocation of CHF 1.2 million to other reserves at the Annual General Meeting. Subject to the approval of this distribution of profits at the Annual General Meeting, the Neue Bank’s equity will thus reach CHF 141.4 million. With a tier 1 ratio of 39.9 percent, the bank has an above-average capital base that guarantees security and stability for its customer base.
Strategy 2025 is on course
Neue Bank will continue the investments in IT that it started over the past few years this year. The measures to optimize processes and increase efficiency are part of Strategy 2025. The company will also continue to increase staff depending on the situation. Some uncertainties due to higher volatility on the market, no relaxation in euro and Swiss franc interest rates and the uncertain factors of the Russia-Ukraine conflict and the Covid-19 pandemic, Neue Bank is very confident that it will successfully master future challenges and achieve its goals.