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Introduction & Market Context
Vontobel Holding AG (SIX:VONN) presented its half-year 2025 results on July 24, 2025, reporting a 15% year-over-year decline in profit before tax to CHF 148 million, while highlighting strong private client inflows and progress on its efficiency program. The Swiss financial firm operated in a mixed market environment during the period, with global equities rising while facing headwinds from USD weakness and lower Swiss interest rates.
The market backdrop featured in the presentation showed global equities (MSCI ACWI) rising approximately 20% from 1H 2024 to 1H 2025, while global bonds showed modest gains. Government bond yields for both USD and CHF decreased during the period, and the Swiss franc strengthened against the US dollar.
Financial Performance Highlights
Vontobel reported solid but lower profits for the first half of 2025, with profit before tax declining to CHF 148 million from CHF 173 million in 1H 2024. Group net profit fell to CHF 116 million from CHF 130 million in the same period last year. The company attributed the decline to macroeconomic headwinds, particularly USD weakness (CHF 8 million negative impact) and lower interest rates in Switzerland.
As shown in the following chart detailing the profit bridge from 1H 2024 to 1H 2025, cost reductions of CHF 21 million partially offset the CHF 29 million decline in operating income:
Operating income decreased by 5.3% to CHF 689 million, compared to CHF 728 million in 1H 2024. The decline was attributed to USD weakness, lower rates in Switzerland, and slower client trading activity following April market volatility.
Despite these challenges, assets under management increased by 2% to CHF 233.3 billion, driven by net new money of CHF 2.0 billion, positive market performance, and the IHAG acquisition, which offset negative currency effects of CHF 9.1 billion.
Strategic Progress
Vontobel highlighted several areas of strategic progress during the first half of 2025, including its CHF 100 million efficiency program, which is tracking to plan with run rate savings of CHF 62 million already achieved. The program has delivered tangible results through streamlining the technology stack into six core platforms, insourcing contractors, and renegotiating vendor contracts.
The company also reported completing the integration of IHAG ahead of schedule, following the acquisition of IHAG’s client book that closed on January 3, 2025. Additionally, Vontobel made targeted high-impact hires to drive growth and launched new products and solutions in growth areas.
Business Segment Performance
The Private Clients segment demonstrated strong performance with an annualized net new money growth rate of 6.0% in 1H 2025, continuing its consistent track record of strong inflows. The presentation highlighted strategic actions for this segment, including expanding the relationship manager force in key markets and leading with investment-driven, client-first advice.
The Institutional Clients segment faced more challenging conditions but showed signs of recovery in Q2 2025. Fixed Income products led the recovery with positive net new money of CHF 1.5 billion in 1H 2025, while Equities turned positive in Q2 with CHF 0.2 billion in inflows after experiencing outflows in Q1.
Investment performance was particularly strong 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 showed improvement with 61% of assets in the top half over one year.
Capital Position and Balance Sheet
Vontobel maintained a strong capital position, with the CET1 ratio increasing to 16.7% from 16.1% at the end of 2024. This improvement was driven by capital generation, partially offset by business growth and the impact of Basel III Final implementation.
The company reported a strong and liquid balance sheet, which has been fully marked to market. Vontobel highlighted its conservative lending approach with CHF 2.1 billion in Swiss mortgages and CHF 4.8 billion in Lombard loans. The company also noted that it has been profitable in every single year since its listing in 1986, underscoring its resilient business model.
Forward-Looking Statements
Looking ahead, Vontobel reaffirmed its medium-term targets, including 4-6% operating income growth (1H25:-5.3%), 4-6% net new money growth (1H25:1.7%), return on equity >14% (1H25:10.2%), and a cost/income ratio <72% (1H25:77.9%). While current performance falls short of these targets, the company expressed confidence in its strategic direction.
The company expects a gradual recovery in equity flows and plans to expand its fixed income and multi-asset strategies. According to the earnings call transcript, Vontobel anticipates net interest income to range between CHF 75-85 million in the second half of the year.
Vontobel’s Co-CEOs, Christel Rendu de Lint and Georg Schubiger, emphasized the value delivered to clients through advice, active management, and customization, while expressing confidence in the firm’s integrated model to drive growth despite market challenges.
Conclusion
Vontobel’s half-year 2025 results reflect both the challenges of the current market environment and the firm’s strategic initiatives to navigate these conditions. While profitability declined due to macroeconomic headwinds, the company demonstrated resilience through strong private client inflows, improving institutional client momentum, and successful implementation of its efficiency program. As Vontobel continues to focus on its strategic priorities and cost optimization, its outlook remains cautiously optimistic amid ongoing market uncertainties.
Full presentation:
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