Valiant H1 2025 Slides: Commission Business Up 7.7%, Dividend Increased to CHF 5.80

Swiss regional bank Valiant Holding AG (SWX:VATN) presented its mid-year 2025 results and strategic outlook on July 25, highlighting strong growth in its commission business and an increased dividend. The bank’s shares closed at CHF 128.80 prior to the presentation, up 1.4% for the day and trading near the upper end of its 52-week range of CHF 95.10 to CHF 131.80.

Executive Summary

Valiant’s investor presentation outlined the bank’s "Valiant 2029" strategic plan, which builds on its successful 2020-2024 strategy implementation. The new plan emphasizes income diversification, operational efficiency, and sustainable growth while maintaining the bank’s low-risk profile.

Key highlights include a 7.7% year-over-year increase in commission business and services, a dividend increase of CHF 0.30 to CHF 5.80, and an improved net interest margin of 1.09%, up from 1.06% in the first quarter of 2025. The bank maintains a solid capital position with a total capital ratio of 16.8% and a leverage ratio of 6.6%.

Strategic Initiatives

Valiant’s 2029 strategy focuses on profitable growth through diversification, with particular emphasis on expanding its commission business and services. The bank aims to strengthen its advisory capabilities, develop digital retirement solutions, and expand its service offerings for both private clients and SMEs.

As shown in the following chart of Valiant’s income growth strategy:

The bank has set ambitious targets for its commission business, targeting growth of more than 5% annually through 2029. This diversification is intended to reduce reliance on interest income in Switzerland’s low interest rate environment.

Valiant’s strategic framework is built around five key pillars, as illustrated in this strategic overview:

The bank plans to achieve these goals while maintaining its commitment to simplicity, which it views as a competitive advantage in the Swiss banking market. Valiant operates approximately 80 locations across 15 Swiss cantons, with a particular focus on growth regions and economically strong areas like Zurich.

Financial Performance

Valiant reported solid financial results for the first half of 2025. The bank’s commission business showed particularly strong performance, growing 7.7% year-over-year, with income from securities trading and investment activities up CHF 3.7 million (+13.6%).

The bank’s interest margin widened slightly to 1.09% from 1.06% in the first quarter, despite the Swiss National Bank lowering its key rates in two steps from 0.50% to 0.00% during the first half of 2025. Customer assets increased by CHF 664 million (+2.0%), while customer assets invested grew by CHF 577 million (+5.2%).

Valiant’s capital position remains strong, with a total capital ratio of 16.8%, at the upper end of its self-defined range of 15-17% and well above the regulatory minimum requirement of 12% (or 13.7% including the countercyclical capital buffer).

As shown in this capital ratio chart:

The bank’s profitability metrics have also shown improvement, with return on equity trending upward in recent years:

Low-Risk Business Model

Valiant emphasized its conservative approach to banking, highlighting its low-risk business model as a key differentiator. The bank focuses primarily on retail banking with no investment banking exposure, maintaining high asset quality with low non-performing loans.

The bank’s loan portfolio is predominantly secured, with 98% of loans collateralized and 96% in the form of mortgages. This conservative approach has helped Valiant maintain stable risk indicators despite its expansion strategy.

As shown in the following risk management overview:

The Swiss market continues to provide a favorable environment for Valiant’s business model, with stable population growth, increasing numbers of SMEs, and growing demand for pension and investment advice.

Dividend and Shareholder Value

Valiant has maintained a consistent track record of dividend growth, proposing an increase of CHF 0.30 to bring the dividend to CHF 5.80 based on strong operating results. The bank aims to continue this trend with a target payout ratio above 50%.

As illustrated in this dividend history chart:

The bank’s shares are 100% free float, with approximately 52% owned by institutional investors. The largest shareholders are UBS Fund Management (10%) and Swisscanto Fondsleitung (5%). Valiant noted that its stock has outperformed over one, three, and five-year periods.

Forward-Looking Statements

Looking ahead to 2029, Valiant has established clear targets across multiple dimensions:

The bank aims to achieve loan growth exceeding 2% annually and commission business growth above 5% per year. On the profitability front, Valiant targets a cost-to-income ratio below 55% (before depreciation) and a return on equity exceeding 7%.

Capital management remains a priority, with a target CET1 ratio of 15-17% and continued annual dividend growth with a payout ratio above 50%.

The bank also emphasized its commitment to sustainability, with objectives to reduce CO2 emissions in line with the Paris Agreement and Swiss climate goals, and to increase the proportion of women in management from 27% currently to 33%.

For investors, Valiant presents itself as a stable Swiss banking option with a clear strategy for growth and value creation, underpinned by a conservative risk profile and consistent dividend policy.

Full presentation:

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