Company profile for investors

An overview of Valiant for investors and analysts.


Our company profile for investors in German

Valiant is an independent Swiss financial services provider. Valiant operates exclusively in Switzerland and offers private clients and small and medium-sized businesses a comprehensive range of easy-to-understand products and services covering all financial needs. Valiant has a strong local presence, with 91 branch offices in the following 12 Swiss cantons: Aargau, Basel-Land, Basel-Stadt, Bern, Fribourg, Jura, Lucerne, Neuchâtel, Solothurn, Vaud, Zug and Zürich. And through its innovative digital services, it is available to clients throughout Switzerland. Valiant has total assets of CHF 28.1 billion and more than 1,000 employees, including 80 trainees.

Find more information in our latest investor presentation:

Download Presentation for investors, May 2019 (pdf 1 MB)

Ambitious strategic and financial targets until 2020

Under our current strategy, we are seeking to achieve a return on equity of 6 to 8 per cent by 2020. The targeted dividend payout ratio in this period is between 40 and 70 per cent, with a dividend of at least CHF 4.40 per share. We are also striving to keep the total capital ratio between 15 and 17 per cent, and as such well in excess of the regulatory minimum.


Geographic expansion and digitalisation

In order to meet these objectives, we are investing in three areas:

  • Firstly, we are expanding our geographical base. At present, Valiant operates predominantly in rural areas. To remain fit for the future, we are increasingly moving into cities and fast-growing centres – after all, that is where the clients are. We will be incrementally building up our presence over the coming years.
  • Secondly, we are investing in digitisation, in our brand and in our employees. By digitising our banking services, we want to make our clients' financial affairs simpler and to be a reliable partner for them in the digital world.
  • Thirdly, we are ready to embark on non-organic growth. We would not be looking to diversify, but rather to sharpen our existing focus. Such options would therefore need to be a good fit with our business model before we would study them in depth.


Increased efficiency

The additional growth will be achieved with existing middle- and back-office resources.


Find more information about our strategy and targets in our latest investor presentation:

Download Presentation for investors, May 2019 (pdf 1 MB)

Stable and sustainable dividend policy

Valiant pursues a stable dividend policy. In 2016, Valiant increased the target payout ratio from 30%-50% to 40%-70% of net profit, with a dividend of at least CHF 4.00 per share.


Stable or increasing dividends for 20 years

Valiant has paid out stable or increased dividends ever since it was founded in 1997.


201820172016201520142013201220112010200920082007
Dividend4.4034.003.803.603.203.203.2013.2023.203.203.103.10
Payout ratio58%53%51%50%54%55%40%40%41%36%34%34%

​​​​​​​
1  of which CHF 1.85 as a dividend and CHF 1.35 as a distribution from capital contribution reserves​​​​​​​
2   distributions from capital contribution reserves
3   proposed to the AGM


Very high asset quality

The quality of the Valiant loan portfolio is very high. 97% of our loans (CHF 24.0bn) are covered. 94% of the mortgages are first-tier. The loan-to-value of the mortgage portfolio amounts to 63.1%, and the average residual term stands at a low 3.8 years. Valiant is not exposed to regions subject to steep house price inflation. 76% of our mortgages were originated in the region of Bern, Lucerne and Aargau.

Non-performing loans amount to 0.13% of total loans. Value adjustments for credit risk are 0.21% of total loans (all figures as per 31/12/2018).


Low risk profile

Valiant’s risk profile is low. We are solely active in the retail banking business, with long-term customer relationships in Switzerland. Our main income sources – mortgages and commissions - provide very transparent, stable earnings. There is no proprietary trading.

The low risk profile builds on a restrictive lending policy, a diversified client portfolio, and a successful asset & liability management. Despite a long history of takeovers, there is no goodwill on the balance sheet. The increased lending volumes no not compromise the very high quality of loans.

Find more information about our asset quality and risk profile in our latest investor presentation:

Download Presentation for investors, May 2019 (pdf 1 MB)

More stable and diversified funding

At Valiant, we are making the most of our various funding options. In the current low interest rate environment, we aim to further stabilise our funding and diversify the instruments we use. To achieve this, we will continue to increase the amount of stable client deposits and reduce our unsecured funding. In the medium term, we will also add to our secured funding through our Valiant covered bonds programme. 


Further reductions in financing costs

Refinancing is a key way of reducing interest costs despite the low interest rate environment and making interest margins more resilient. Since 2013, we have reduced interest expense by more than half. Funding at very low rates will further reduce Valiant’s interest expense going forward.


Find more information about our funding in our latest investor presentation:

Download Presentation for investors, May 2019 (pdf 1 MB)

Sustainability is in our DNA

We know our clients, and our clients know us. Our clearly defined geographical area of activity, our positioning as a financial services provider, and the close relationships with our clients are the key features of our simple, responsible and sustainable business model.


Sustainability criteria are rooted in our lending policy

The client deposits and savings entrusted to us are funding home owners and SME. Our lending is broken down into many small and medium-sized amounts. Thanks to our regional roots and close client relationships we know the properties and businesses that we finance very well. In line with our careful lending policy, we take a cautious approach towards sectors that have questionable ecological, economic and social aspects.


Valiant operates exclusively in Switzerland

Given the very stringent regulatory environment in Switzerland, our approach to many ecological, economic and social aspects already meets relatively high standards. And given Valiant’s simple business model, we do not finance international projects, which would have to be critically examined in terms of fundamental human rights, large-scale environmental pollution, and forced or child labour. Exposure to sustainability risks is also low.

Learn more about Valiant’s corporate responsibility and sustainability in our ESG section here.

Improved earnings power despite low-interest environment


Balance sheet (CHF bn)20182017201620152014

Total assets

27.427.626.125.525.3

Loans

– of which mortgages

24.0

22.5

23.5

21.9

22.3

20.7

22.1

20.4

21.8

20.0

Client deposits

18.318.718.218.117.9

Client assets

26.427.826.827.227.7

Equity capital

2.2672.2032.1282.0511.986


Income statement (in CHF m)20182017201620152014
Operating income 1404388379382360

Operating expenses

226226221213216

Operating profit

152136139126105

Consolidated net profit

12011911811495
1 Before value adjustments for credit risk, and loan losses



Key ratios20182017201620152014 
Net interest margin112bps110bps113bps113bps104bps

Cost/income ratio

55.9%58.3%58.4%55.8%59.8%

Non-performing loans/Total loans

0.13%0.16%0.14%0.22%0.22%
Return on equity5.4%5.5%5.6%5.6%5.1%


Equity capital20182017201620152014

Core capital ratio, Tier 1+2

16.5%17.2%17.3%16.8%15.8%


Headcount20182017201620152014

Employees

10131000957926987
Full-time equivalents890873842821883

Please find more key financials here: Results and reports


Contact

Questions on Valiant? 
Simply contact us.

Joachim Matha​​​​​​​
Head of Investor Relations

+41 31 310 77 44
ir@valiant.ch