VZ Holding, a Swiss financial service company, sees a rise in first-half profit due to higher interest rates and increased fees. The company also gained new clients and expects further growth in the second half of the year.
Troy D. Hanson
August 17, 2023
VZ Holding, an independent Swiss financial service company, has announced a rise in its first-half profit, citing higher interest rates and increased fees as contributing factors.
During the period, VZ Holding achieved a net profit of 86.3 million Swiss francs ($98.2 million), compared to CHF76.9 million in the previous year. This positive result was driven by a 9.4% increase in revenue, reaching CHF224.3 million.
Factors Behind the Growth
The company attributed the growth to higher interest rates, resulting in a boost in banking income. However, the increase in fees for managing assets was only marginal. Notably, VZ Holding also experienced a substantial surge in consulting fees due to the growing demand for financial advice.
Expanding Client Base
In addition to financial gains, VZ Holding expanded its clientele during the reporting period, attracting approximately 4,000 new clients and generating CHF2.4 billion in net new money.
Executive Board Chairman, Giulio Vitarelli, expressed optimism for the remainder of the year, anticipating even stronger revenue and profit growth in the second half. Furthermore, he stated that an above-average increase in profit for 2023 is attainable and expects a further increase in dividends.