Very positive result
for Neue Bank

Neue Bank achieved a profit of CHF 8.8 million in 2022 and an inflow of net new funds in the amount of CHF 166.9 million. Assets under management amounted to CHF 5.8 billion. The Board of Directors is proposing a dividend of 17 % on share capital to the General Meeting.

“Fiscal year 2022 was shaped by two opposing earnings effects. On the one hand, Russia’s war against Ukraine had a major negative impact on the global economy and the financial markets. This resulted in an extremely unstable market environment characterised by great uncertainties,” says Prof. Dr. Manuel Ammann, Chairman of the Board of Directors of Neue Bank. “On the other hand, our interest rate business benefited from the lifting of the low interest rate environment that dominated recent years. This had a positive impact on our interest margin so that – despite the adverse circumstances – we were able to increase our profit to an impressive CHF 8.8 million.”

Above-average increase in profit

Neue Bank is accordingly able to report a result that is 15 % above the level of the previous year, and also above our budgeted target. The bank also benefited from a further inflow of net new funds in the amount of CHF 166.9 million. Due to the falling prices on the markets, assets under management fell slightly below the CHF 6 billion mark, reaching CHF 5.8 billion at the end of December 2022.

Net interest income in the amount of CHF 8.4 million – an increase of 89.8 % – contributed substantially to the positive result. Despite significantly restrained client activities and lower assets under management due to market conditions, Neue Bank was still able to generate commission and fee income amounting to CHF 16.5 million. Income from financial operations reached CHF 5.4 million, not quite as high as the previous year due to valuation losses on the bank’s own investments resulting from the negative price corrections on the financial markets. Together with other ordinary income of CHF 2.4 million, which included a one-off effect, these income components resulted in a 12.7 % increase in operating income over the previous year, reaching CHF 32.7 million. On the cost side, operating expenses were CHF 21.0 million. While this amount was 9.9 % higher than the previous year due to expenses for strategy implementation, it was still below budget. The cost/income ratio was 64.1 % (previous year: 65.7 %).

Thanks to the positive result, the Board of Directors is proposing that the General Meeting adopt a dividend of 17 % on share capital and an allocation of CHF 1.9 million to other reserves. Subject to approval by the General Meeting, the equity capital of Neue Bank will reach CHF 143.3 million. The bank’s Tier 1 ratio of 29.5 % represents a capital base far above the regulatory requirements, guaranteeing a high level of security and stability.

Change in the Executive Committee

In December 2022, Reinhard Malin decided to pursue new challenges in his career. He will be leaving the bank effective 30 June 2023, but will continue to serve us as an advisor. Reinhard Malin has worked for Neue Bank since 2008, and since 2016 as a Member of the Executive Committee, playing a key role in advancing the development of Compliance and Legal. We would like to thank Reinhard Malin for his great dedication to the company and wish him all the best for the future.

Stefan Tschopp will succeed Reinhard Malin on the Executive Committee effective 1 April 2023, responsible for Legal/Tax. Stefan Tschopp began his career in risk and compliance at major Swiss banks and has worked for many years as head of risk and compliance for several Liechtenstein banks. Most recently, he served in the Executive Management of Neue Privat Bank AG as Head of Legal & Compliance. Neue Bank is pleased to welcome Stefan Tschopp, a proven expert in legal, risk, and compliance with many years of management experience.

Focus on personal client relationships

Technological progress is advancing rapidly, requiring Neue Bank to combine the digital and analogue worlds in a sensible way and to design a hybrid business model. Digitalisation and the pandemic demonstrated the importance of this hybrid approach to business models, but also to client relationships. Client interactions in particular took place almost entirely digitally in recent years. Clients switched to digital channels with hardly any problems. Nevertheless, personal contact with advisors remains crucial for our clients, because portfolio management is a matter of trust. So while our advisors take advantage of the full range of digital opportunities, they do not neglect direct contact. The needs of our clients are always the focus of our attention at Neue Bank.

Attractive employer

Neue Bank strives to further enhance its attractiveness as an employer. Working from home and flexible work solutions are important approaches to changing our everyday working lives, requiring intelligent adjustments to our office concept. Expertise in new technologies must be established, and a networked, cross-departmental vision of work must be promoted. We are approaching
these transformations with a clear focus, and we believe it is important to involve our employees and to give them leeway in shaping these changes themselves. To do justice to the rapidly changing environment, we provide our employees with targeted support so that they can flourish at Neue Bank in the best possible way and continue to contribute to Neue Bank’s successful further development.

Outlook

The market environment is still challenging. Factors such as the geopolitical uncertainty – especially due to Russia’s invasion of Ukraine – and the associated volatility on the financial markets, high inflation, and rising interest rates are creating challenges on the markets and will have an impact on economic development in the coming months. Despite these challenges, Marcel Lüchinger, CEO of Neue Bank, expresses confidence: “We are optimistic about the future. We
can build on a solid foundation and pursue a clear, future-oriented strategy focused on our core competencies: customised investment advice and portfolio management for private clients and high-quality custodian bank services for financial intermediaries.”