The bank reported a surge in bank profits, and said it will continue to concentrate on enhancing long-term profitability.

Liechtenstein-headquartered VP Bank reported a surge in annual 2025 profit yesterday, while becoming one of the first banks to report figures since the outbreak of military conflict between US/Israel and Iran at the weekend, a move that ratchets up geopolitical risks.

VP Bank said 2025 profit amounted to SFR47.0 million ($59.99 million) climbing 154.6 per cent from a year ago, bolstered by rising income and a cut to costs.

Looking ahead, the bank said: “VP Bank anticipates a challenging environment in 2026, characterised by geopolitical uncertainties, complex monetary policy framework conditions and a decline in interest income.

“At the same time, the group will stick to its strategic course, the key elements being a continued focus on sales and high operational efficiency coupled with steady cost discipline. Thanks to its strong capitalisation, comfortable liquidity and a clear strategic orientation, VP Bank considers itself well positioned to achieve stable corporate earnings and create long-term value for its clients and other stakeholders,” it said. 

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Client assets under management rose by 5.8 per cent year-on-year to SFr53.7 billion. This development was driven by both market effects and positive net new money inflows, the bank said. VP Bank logged SFr1.2 billion of net new money – up by 2.3 per cent. 

Operating income rose by 2.1 per cent to SFr337.3 million, fuelled by growth in commission and service fee income. In contrast, interest income decreased by 5.4 per cent to SFr144.5 million, reflecting the challenges posed by the current interest rate environment. Currency influences also weighed on operating income, it said. 

Operating costs fell by 8.9 per cent to SFr280.8 million. Personnel costs dropped by 5.7 per cent to SFr172.8 million, while general and administrative expenses fell by 9.2 per cent. Depreciation and amortisation decreased by 21.1 per cent.

VP Bank said its tier 1 ratio – its capital shock absorber - was 26.1 per cent, and the liquidity coverage ratio was 180.4 per cent.

“Our annual results show that we have implemented the strategic measures we had announced. Despite a challenging environment, we were able to #reduce our cost base and further develop key growth drivers. Using this as a foundation, we can now focus on enhancing our long-term profitability,” Urs Monstein, Group CEO of VP Bank, said. 

In April 2025 this news service talked to VP Bank about its business of serving external asset managers in Singapore and the wider Asia region. In November 2024, the bank made a number of senior management changes. In August last year, VP Bank shut its Hong Kong office.