Valiant is on track with the implementation of Strategy 2024: it is opening branches in new regions and strengthening its business in its core market. And that strategy is paying off. Consolidated net profit for the first nine months of the year came in at CHF 88.6 million, a 1.1% increase on the year-earlier figure. Operating income was up 4.3% to CHF 316.9 million, and operating profit rose 0.6% to CHF 108.7 million. "We work day in and day out to provide simple financial solutions to our clients. Thanks to our expansion strategy, we are increasing our presence in our market area. Our 9M results confirm that we are on the right track," says Valiant CEO Ewald Burgener.
Solid interest income
As in previous quarters, interest income remained strong. Interest expense was down thanks primarily to Valiant’s active asset and liability management and its covered bond programme. Net interest income before value adjustments rose by 3.9% to CHF 254.9 million. Valiant's loan portfolio remained robust throughout the COVID-19 pandemic, and in 9M 2021, value adjustments for credit risk and loan losses amounted to CHF 8.3 million. As a result, net interest income stood at CHF 246.6 million, up 4.6% on the 9M 2020 figure.
Growth in fee and commission income
Fee and commission income increased by 5.5% to CHF 48.4 million, far exceeding the 3% target. Commission income from securities trading and investment activities was particularly strong, rising 12.6% year on year.
Other income and operating expenses
Other operating income was down CHF 3.1 million (-24.1%) to CHF 9.9 million due to lower income from holdings. Net trading income climbed by CHF 2.8 million (30.0%) to CHF 12.0 million. Operating expenses increased in line with Valiant's plans, rising 6.2% to CHF 190.8 million. "We are investing in our digital services and in branches in new market areas. We are rigorously implementing our strategy so that we can generate economies of scale," explains Ewald Burgener.
Picking up the pace of expansion
Valiant is stepping up its expansion from Lake Geneva to Lake Constance. On 1 November 2021, it opened a new branch in Bülach. It will open a branch in Wohlen on 15 November and another in Frauenfeld on 29 November. Valiant has already found further locations in Wädenswil, Meilen, Winterthur, Pully and Uster. Between 2020 and 2024, Valiant will add 14 branches to its network, creating 170 full-time equivalent positions, including 140 client advisors.
Growth in loans and client deposits
Client loans rose by 4.2% to CHF 27.0 billion. As a result, Valiant has already exceeded its annual 3% growth target. Since 2017, 45% of the growth in client loans has come from Valiant’s new branches. Client deposits increased by 6.6% to CHF 22.4 billion.
Progress on sustainability
In Q3 2021, Valiant rolled out its new sustainably focused strategy funds. Clients can now invest their money in responsible companies that are committed to preserving the environment, enhancing people’s well-being and helping to reduce carbon emissions. Valiant's efforts in this area were recognized by MSCI, which raised the bank's sustainability rating from BBB to A.
Stable business trend
Valiant expects to see a stable business trend for 2021 as a whole, with full-year profit in line with the prior-year figure.
Key balance sheet figures
in CHF millions
in CHF millions
|Total assets||35 928||33 184||8,3|
- of which mortgage loans
|Client deposits||22 415||21 028||6,6|
|Headcount (FTEs)||985,4||937,4||+ 48 FTEs|
Key income statement figures
in CHF thousands
in CHF thousands
|Net interest income before value adjustments for credit risk, and loan losses||254 911||245 397||3,9|
|Fee and commission income||48 387||45 867||5,5|
|Net trading income||12 018||9 244||30,0|
|Other operating income||9 916||13 060||-24,1|
|Operating income||316 945||303 988||4,3|
|Operating expenses||190 845||179 757||6,2|
|Operating profit||108 677||108 051||0,6|
|Consolidated net profit||88 565||87 638||1,1|
Documents and information on the 9M results are available at: valiant.ch/results.
Images can be downloaded here: valiant.ch/downloads.