2020

28.02.2020 – VZ Holding AG

VZ Holding AG: VZ Group increases earnings by 6 percent

VZ Holding AG / Key word(s): Annual Results
VZ Holding AG: VZ Group increases earnings by 6 percent

28-Feb-2020 / 06:50 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

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Press release

Source: VZ Holding AG / SIX: VZN / ISIN: CH0028200837

VZ Group increases earnings by 6 percent

Zurich, 28 February 2020 - VZ Group increased its operating revenues by 6.2
percent to CHF 301.7 million. After stagnating in the first half of the
year, profits rose by 4.1 percent to CHF 102.3 million over the year as a
whole. The dividend is to be increased from CHF 4.90 to CHF 5.10 per share.
CEO Matthias Reinhart expects further growth in revenues and profit for the
2020 financial year.

6.2 percent higher operating revenues
As expected, the positive mood in the second half of the year was reflected
in both operating revenues and profit. After a slow first half of the year,
earnings rose by 6.2 percent to CHF 301.7 million over the year as a whole.
The slower growth compared to the previous year is due to the fact that
revenues from assets under management develop with a time lag. In addition,
bank revenues remain under pressure.The trend towards passively managed
portfolios and all-in management fees leads to lower trading and transaction
revenues. After stagnating in the first half of the year, profit rose by 4.1
percent to CHF 102.3 million over the year as a whole.

5000 additional management clients
VZ Group has again advised a large number of new clients, and many of them
have opted for one of its management services. With 5000 additional
management clients, VZ Group achieved a new record. At the same time, the
number of services used by existing clients is steadily increasing. VZ
Finanzportal, which enables clients to manage their assets conveniently
online - including insurance policies, mortgages and much more - also
contributes to this development. Net new money grew by 5.5 percent to CHF
2.7 billion in 2019.

Higher balance sheet total and dividend
The balance sheet total increased from CHF 3.1 to 4.1 billion in 2019. This
is due to the growing number of clients and the higher cash holdings per
client. Despite the growing balance sheet total, the core capital ratio is a
solid 27.7 percent. The Board of Directors will propose to the annual
general meeting an increase in the dividend from CHF 4.90 to CHF 5.10 per
share. As in the previous years, some 40 percent of the profit will thereby
be distributed to the shareholders. Over the next couple of years, the Board
of Directors intends to gradually increase the payout ratio to up to 50
percent. In addition, the Board proposes a share split in the ratio of 1:5.

Outlook
«Provided that the financial markets remain stable, revenues should continue
to grow in the current year», says Matthias Reinhart, Chairman of VZ Group's
Executive Board. «Profit growth in particular is expected to improve because
the tax burden will decrease again.»

Annual report
The detailed annual report as well as an investor presentation can be
downloaded from the investor relations section on VZ Group's website:
vzch.com

Conference call
Media representatives and analysts are invited to discuss VZ Group's results
in one of today's teleconferences hosted by Matthias Reinhart (Chairman of
the Executive Board) and Rafael Pfaffen (Chief Financial Officer). For
details, please get in touch with Adriano Pavone or Petra Märk:

Contacts

     Adriano Pavone                  Petra Märk
     Head Media Communications       Head Investor Relations
     Phone +41 44 207 25 22          Phone +41 44 207 26 32
     Mail adriano.pavone@vzch.com    Mail petra.maerk@vzch.com

Alternative performance measures
To measure its performance, VZ Group uses key figures that are not defined
under International Financial Reporting Standards (IFRS). These alternative
performance measures are listed on page 174 of the Annual Report 2019.

VZ Group
VZ is an independent Swiss financial service company, and VZ Holding Ltd's
shares are listed on the SIX Swiss Exchange. Asset management, pension and
estate planning for individuals as well as insurance and pension fund
management for companies are VZ Group's core services. VZ Holding is
headquartered in Zurich, and VZ has 34 branch offices throughout Switzerland
and Germany.

Forward-looking statements
This press release contains forward-looking statements that involve known
and unknown risks, uncertainties or other factors that may cause the actual
results to be materially different from any future results, performance, or
achievements expressed or implied by such statements. Against the background
of these uncertainties, readers should not rely on such forward-looking
statements. The company assumes no responsibility to update forward-looking
statements or to adapt them to future events or developments.

Key figures

     Income statements (CHF '000)       2019       2018
     Operating revenues              301'718    284'188
     Operating expenses              159'340    157'004
     Operating profit (EBIT)         124'750    116'764
     Net profit                      102'305     98'246
     Balance sheets (CHF '000)    31.12.2019    31.12.2018
     Total assets                  4'056'231     3'087'945
     Equity                          549'774       512'266
     Net cash                        432'380       439'543
     Equity key figures                            31.12.2019    31.12.2018
     Leverage ratio                                     13.6%         16.6%
     Common equity tier 1 capital ratio (CET 1)         27.7%         30.1%
     Total eligible capital ratio (T1 & T2)             27.7%         30.1%
     Funds under management (CHF million)    31.12.2019    31.12.2018
     Assets under management                     27'627        23'056
     Employees                      31.12.2019    31.12.2018
     Full-time equivalents (FTE)         944.8         897.5


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