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Introduction & Market Context
Vontobel Holding (SIX:VONN) AG presented its half-year 2025 results on July 24, 2025, highlighting how the company navigated a challenging market environment characterized by volatile equity recovery, lower Swiss yields, and USD weakness. The Swiss investment firm maintained solid performance despite these headwinds, largely through its efficiency program and strong private client business.
As shown in the following market backdrop chart, global equity and bond markets experienced significant volatility, with government bond yields and FX rates creating a complex operating environment:
Executive Summary
Vontobel reported a profit before tax (PBT) of CHF 148 million for the first half of 2025, demonstrating resilience despite macroeconomic challenges. Assets under management (AUM) increased slightly to CHF 233 billion, driven primarily by strong private client flows with an annualized growth rate of 6%. The company maintained a strong capital position with a CET1 ratio of 16.7% while continuing to make progress on its CHF 100 million efficiency program.
The following slide summarizes Vontobel’s financial results and strategic progress for 1H 2025:
Quarterly Performance Highlights
Vontobel’s performance in 1H 2025 showed a mixed picture across business segments. The Private Clients division delivered strong net new money of CHF 3.3 billion, representing a 6.0% annualized growth rate. In contrast, the Institutional Clients segment experienced outflows of CHF 1.3 billion (-2.3%), though it turned positive in Q2 2025 after several quarters of outflows.
The company’s investment solutions showed strong progress in fixed income, with 83% of assets in the first and second quartiles over a one-year period and 97% over a five-year period. Equities performance has been improving, with 61% of assets in the top two quartiles over one year.
As illustrated in the following chart, Vontobel’s investment solutions have shown strong performance across asset classes:
The Private Clients segment has maintained consistent growth in net new money, with the current 6.0% annualized growth rate well within the target range of 4-6%:
Strategic Initiatives
Vontobel’s efficiency program is a key strategic initiative, with the company on track to achieve its targeted CHF 100 million in savings by 2026. As of 1H 2025, the program has delivered run rate savings of CHF 62 million with costs-to-achieve of CHF 10 million. The program includes streamlining the technology stack into six core platforms, insourcing approximately 45 contractors by year-end, and renegotiating around 340 vendor contracts.
The following chart shows the progress of the efficiency program against targets:
The company is also making strategic progress in its business segments. In Investment Solutions, Vontobel is building on its leading fixed income capabilities, realigning and strengthening equities, expanding its private markets offering, and accelerating growth with innovative solutions. In Private Clients, the company is expanding its relationship manager force in key markets, focusing on investment-driven advice, and advancing its digital platform for structured solutions.
Detailed Financial Analysis
Vontobel’s operating income for 1H 2025 was CHF 689 million, down 5.3% from CHF 728 million in 1H 2024. This decline was primarily due to macroeconomic headwinds, including USD weakness and lower rates in Switzerland, which had a net FX impact of CHF 8 million.
The following waterfall chart illustrates the drivers of profit before tax and net income development:
Assets under management increased slightly to CHF 233.3 billion, up from CHF 229.1 billion at the end of 2024. This increase was driven by net inflows, positive performance, and the IHAG acquisition, partially offset by negative FX impacts:
Operating expenses decreased by 2% year-over-year, reflecting the impact of the efficiency program. However, the cost/income ratio increased to 77.9% in 1H 2025 from 74.7% in FY 2024, reflecting revenue decline in low marginal cost areas.
The company’s CET1 capital ratio increased to 16.7% from 16.1% at the end of 2024, demonstrating continued strong capital position and ongoing capital optimization:
Forward-Looking Statements
Vontobel has set clear targets for sustainable growth and shareholder value. The company aims for 4-6% growth in operating income and net new money, a return on equity of over 14%, and a cost/income ratio below 72%. While current performance falls short of these targets in some areas, the company remains focused on long-term growth through its strategic initiatives.
The following slide presents Vontobel’s targets and current performance:
Looking ahead, Vontobel plans to continue executing on its strategic priorities, including growing profitably in Private Clients and Institutional Clients, delivering value to clients through advice, active management, and customization, and meeting its efficiency goals. The company has scheduled its 9M Trading Update for October 30, 2025, and full-year results for February 6, 2026.
In summary, Vontobel’s 1H 2025 results demonstrate the company’s ability to navigate challenging market conditions through operational efficiency and strong client relationships, particularly in the Private Clients segment. While macroeconomic headwinds have impacted revenues, the company’s strategic initiatives and efficiency program are positioning it for sustainable growth.
Full presentation:
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