Valiant continued to record growth and remained on track with the implementation of its Strategy 2024. Valiant's consolidated net profit came in at CHF 27.5 million in Q1 2022, a rise of 3.8% on the year-earlier period. Operating income was up 6.0% to CHF 107.7 million, and operating profit increased by 6.3% to CHF 34.3 million. "We have once again recorded growth in our business operations this year," says Valiant CEO Ewald Burgener. "The strategic decisions and course we have taken in recent years have paid off."
Solid interest income
Net interest income before value adjustments was up 2.9% to CHF 85.7 million as a result of a significant decrease in interest expense. The bank's active and rigorous treasury management also contributed to this solid trend. Valiant has a high-quality and robust lending portfolio, and in Q1 2022, value adjustments for credit risk amounted to CHF 3.2 million. Net interest income for the period came in at CHF 82.5 million, a 3.5% rise on the year-earlier figure.
Robust investment business
Commission income from securities trading and investment activities was up 8.5% to CHF 12.9 million. "I'm particularly pleased with the strong trend in this business. It is thanks to the remarkable work and commitment of our employees. Personal pension products are particularly important for our clients, and we will continue to strengthen and expand this business," says CEO Ewald Burgener. Net fee and commission income rose by a solid 16.2% to CHF 18.6 million. Other operating income was up 60.7% to CHF 2.9 million due to one-off higher income from holdings.
Growth in loans and funds due to clients
Client loans rose by 1.2% to CHF 27.6 billion at 31 March 2022. Funds due to clients increased by 1.5% to CHF 22.5 billion. These increases reflect the trust that Valiant's clients have placed in the bank.
Branch network extended as part of Valiant's regional expansion
Valiant is also on track with its expansion strategy. On 11 April 2022, the bank opened a new branch in Wädenswil, and another will be opened in Pully on 9 May. Additional branches will be opened later this year in Meilen, Winterthur and Uster.
Since 2017, 47% of the growth in client loans has come from new branches. As a result of the expansion, operating expenses rose to CHF 67.8 million in Q1 2022.
Digitalisation projects under way
Valiant is helping to shape digitalisation in the Swiss banking sector. On 7 March 2022, a personal space called myValiant was created for customers on the Valiant website, enabling them to carry out a range of tasks quickly and easily. An updated mobile app with numerous new functions will also be gradually rolled out in 2022.
Sustainability is a key concern for Valiant. In 2021, the bank rolled out its new sustainability-focused strategy funds, which invest in companies that act sustainably and responsibly. For the years ahead, Valiant has developed a comprehensive plan to embed sustainability even more firmly in the bank. More information about Valiant's approach to sustainability and its measures in that area can be found in the Corporate Social Responsibility chapter of the bank’s 2021 Annual Report, which can be downloaded here: gb.valiant.ch/2021.
Programme to increase profitability
In February 2022, Valiant added another strategic aim to its strategy for the 2020–2024 period. "We are pressing ahead with our successful strategy and have embarked on a programme to increase profitability, which should be completed by the end of 2023. The programme is set to generate initial cost savings in 2022 and from 2024 will lead to annual savings of CHF 12–15 million", says CEO Ewald Burgener. Valiant expects its return on equity to increase by around 0.5 percentage points.
Stable business trend
Valiant expects to see a stable business trend in 2022. It has a solid capital and liquidity base and a robust business model. 2022 full-year net profit is forecast to be slightly above the prior-year figure.
Key balance sheet figures
in CHF millions
in CHF millions
|Total assets||36 415||35 560||2,4|
- of which mortgage loans
|Funds due to clients||22 479||22 139||1,5|
|Headcount (FTEs)||1 005,5||994,7||1,1|
Key income statement figures
in CHF thousands
in CHF thousands
|Net interest income before value adjustments for credit risk, and loan losses||85 705||83 312||2,9|
|Net fee and commission income||18 602||16 010||16,2|
|Net trading income||3 686||4 030||-8,5|
|Other operating income||2 932||1 824||60,7|
|Operating income||107 734||101 614||6,0|
|Operating expenses||67 801||62 832||7,9|
|Operating profit||34 324||32 298||6,3|
|Consolidated net profit||27 544||26 547||3,8|
Documents and information on the Q1 results are available at: valiant.ch/results
Images can be downloaded here: valiant.ch/downloads