Vontobel 2022 profit drops 40% amid market turbulence (updated)

Vontobel Holding AG

08/02/2023 06:26

(Adds detail, quote)
       ZURICH, Feb 8 (Reuters) - Swiss private bank Vontobel
Holding  VONN.S  said full year net profit fell 40% as it was
hit by market turbulence and client uncertainty about making new
investments last year.
    Group net profit fell to 230 million Swiss francs ($250
million) from 384 million francs a year earlier, missing
estimates by Zuercher Kantonalbank for 244.1 million francs. 
        Asset under management shrank 16% to 204.4 billion
francs, the wealth and asset manager said. The figure was
slightly below the 205.5 billion estimated by ZKB.
  
        After a record year in 2021, Vontobel was hit last year
by the impact of falling equity and bond markets. Many clients
paused investment decisions due to worries about rising global
interest rates, inflation as well as concerns about a global
economic slowdown.
  
        "Vontobel remains well on track to generate growth
organically and through acquisitions, even in a ‘new world,’"
said Chief Executive Zeno Staub in a statement.
  
        The Zurich-based company also reported overall net new
money outflow of 5.2 billion francs. The wealth management
division received inflows of 5.4 billion francs in new money,
but asset management recorded outflows of 10.6 billion francs.
  
        The company launched a cost-cutting drive in 2022 and,
it said in November, aims to cut costs by a further 65 million
francs by the end of 2023.
  
   ($1 = 0.9213 Swiss francs)
 (Reporting by Noele  Illien; editing by John Stonestreet)
 ((Noele.Illien@thomsonreuters.com; +41 41 528 39 73;))