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Zurich Investment Firm Vontobel Announces Cost-Cutting Measures and Business Reorganization
After a challenging fiscal year in 2023, Zurich-based investment house Vontobel has revealed plans for significant cost-saving measures and a reorganization of its business segments.
Financial Performance
Vontobel reported a 7% decrease in profit, amounting to 214.7 million Swiss francs for the past year. However, the company managed to increase its managed assets by 1% to 206.8 billion Swiss francs, largely attributed to market recovery in the fourth quarter of 2023. Despite a decrease in net new money, adjusted for outflows due to the strategic decision to focus on a limited group of industrialized countries, the company saw a positive growth in its managed assets.
Dividend and Cost-Cutting Initiatives
Despite the challenging market conditions, Vontobel has decided to maintain an unchanged dividend of 3.00 Swiss francs per share. In response to ongoing market uncertainty and a high cost-to-income ratio of 79.5%, the company has launched an initiative to reduce overall costs by 100 million Swiss francs. While emphasizing the importance of balanced key investments for long-term growth, Vontobel also aims to implement structural cost-saving measures in the coming years.
Business Reorganization
As part of its strategic realignment, Vontobel will consolidate its three client units – Asset Management, Wealth Management, and Digital Investing – into two customer segments: Private Clients and Institutional Clients. This move is intended to enhance efficiency and customer orientation within the organization.
Long-Term Financial Goals
Looking ahead to 2024, Vontobel is focused on achieving its long-term financial objectives and creating value for its clients, employees, and shareholders. The company’s leadership team is committed to navigating the future with a clear plan and determination to deliver on its financial targets.
As Vontobel embarks on this new phase, the company aims to strike a balance between prudent financial management and strategic investments, positioning itself for sustainable growth and continued value creation.