Valiant is on track with the implementation of its Strategy 2024 and is continuing on its growth trajectory. It achieved consolidated net profit of CHF 26.5 million in the first quarter of 2021, an increase of 1.5% on the year-earlier period. Valiant increased its operating income by 6.4% to CHF 101.6 million and its operating profit by 2.7% to CHF 32.3 million. “Our operating business continues to be very strong,” says CEO Ewald Burgener. “The encouraging results show that our strategy and business model are standing the test.”
Strong interest business
In interest business, Valiant is continuing the encouraging performance of the previous quarters. Net interest income before value adjustments climbed by 3.8% to CHF 83.3 million. Valiant was also able to considerably lower interest expense in the first quarter of 2021. Active asset and liability management and the issuance of covered bonds contributed substantially to this. Valiant has a high-quality and robust loan portfolio. In the first quarter of 2021, value adjustments for credit risk of CHF 3.6 million were recognised. This resulted in net interest income after value adjustments of CHF 79.8 million, marking a very good increase of 5.9% over the same period in the previous year.
Successful investment business – with accolades
Fee and commission income remained stable at CHF 16 million. Valiant’s measures to strengthen its securities and investment business and to hire additional specialists are paying off. It increased commission income from securities trading and investment activities by 1.3% over the same period in the previous year to CHF 11.9 million. In March 2021, Valiant’s strategy fund “Helvétique Dynamisch” won the Refinitiv Lipper Fund Award Switzerland* in the mixed asset CHF category over a three-year period. The award is a clear affirmation of Valiant’s strong investment expertise. Valiant increased net other operating income by 18.4% to CHF 1.8 million.
Total loans and client deposits increased
Total loans increased by 1.5% to CHF 26.3 billion after the first three months of 2021. Client deposits climbed by 2.1% to CHF 21.5 billion. Valiant is continuing to provide its services in a simple and personal manner during the coronavirus pandemic. “I wish to thank our clients for the trust they are placing in Valiant,” says Ewald Burgener.
Expansion on track
Valiant has accelerated its geographic expansion from Lake Geneva to Lake Constance, creating an additional 19.4 FTEs in the first quarter. Valiant is successfully on track with this expansion: since 2017, 43% of the growth in total loans has been derived from the new locations. Despite this expansion, operating expenses in the first quarter of 2021 increased as expected by only 5.8% to CHF 62.8 million.
Valiant expands its branch network
Valiant is opening a branch in Oerlikon on 31 May 2021 and in Liestal on 21 June. Locations have already been found for the future branches in Bülach, Frauenfeld, Wohlen, Wädenswil, Winterthur, Uster and Pully. Under its expansion strategy, Valiant will be opening a total of 14 additional branches by 2024, creating 170 full-time equivalent jobs, including 140 client relationship advisor positions.
Stable performance expected
Valiant expects its business to remain stable this year. It is able to rely on a strong liquidity and capital base and has a stable business model. Valiant anticipates that its consolidated net profit will remain in line with the previous year in 2021.