SWX:VPBN

Stock Analysis Report

Executive Summary

VP Bank AG provides asset-management and investment-advisory services for private and institutional investors, and financial intermediaries in Liechtenstein and internationally.

Rewards

Trading at 2.6% below its fair value

Earnings are forecast to grow 9.62% per year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.

Share Price & News

How has VP Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VPBN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.1%

VPBN

3.6%

CH Capital Markets

1.0%

CH Market


1 Year Return

20.3%

VPBN

9.2%

CH Capital Markets

17.9%

CH Market

Return vs Industry: VPBN exceeded the Swiss Capital Markets industry which returned 9.2% over the past year.

Return vs Market: VPBN exceeded the Swiss Market which returned 17.9% over the past year.


Shareholder returns

VPBNIndustryMarket
7 Day0.1%3.6%1.0%
30 Day0.7%1.9%2.2%
90 Day9.1%8.0%7.3%
1 Year24.8%20.3%13.6%9.2%23.6%17.9%
3 Year72.4%54.5%1.3%-9.9%41.3%24.0%
5 Year164.9%118.7%-5.4%-23.7%47.5%24.0%

Price Volatility Vs. Market

How volatile is VP Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is VP Bank undervalued compared to its fair value and its price relative to the market?

2.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VPBN (CHF166.2) is trading below our estimate of fair value (CHF170.66)

Significantly Below Fair Value: VPBN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VPBN is good value based on its PE Ratio (16.4x) compared to the Capital Markets industry average (22.9x).

PE vs Market: VPBN is good value based on its PE Ratio (16.4x) compared to the Swiss market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: VPBN is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: VPBN is good value based on its PB Ratio (1x) compared to the CH Capital Markets industry average (1.1x).


Next Steps

Future Growth

How is VP Bank forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VPBN's forecast earnings growth (9.6% per year) is above the savings rate (-0.6%).

Earnings vs Market: VPBN's earnings (9.6% per year) are forecast to grow slower than the Swiss market (10.5% per year).

High Growth Earnings: VPBN's earnings are forecast to grow, but not significantly.

Revenue vs Market: VPBN's revenue (4.5% per year) is forecast to grow faster than the Swiss market (3.3% per year).

High Growth Revenue: VPBN's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VPBN's Return on Equity is forecast to be low in 3 years time (7.4%).


Next Steps

Past Performance

How has VP Bank performed over the past 5 years?

13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VPBN has high quality earnings.

Growing Profit Margin: VPBN's current net profit margins (18.9%) are lower than last year (20.9%).


Past Earnings Growth Analysis

Earnings Trend: VPBN's earnings have grown by 13.9% per year over the past 5 years.

Accelerating Growth: VPBN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VPBN had negative earnings growth (-4.5%) over the past year, making it difficult to compare to the Capital Markets industry average (-3.4%).


Return on Equity

High ROE: VPBN's Return on Equity (6.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is VP Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: VPBN has a low level of unsold assets or inventory.

Debt Coverage by Assets: VPBN's debt is covered by short term assets (assets are 3.6x debt).


Financial Institutions Analysis

Asset Level: VPBN's level of assets compared to its equity is moderate.

Allowance for Bad Loans: VPBN has a sufficient allowance for bad loans.

Low Risk Liabilities: VPBN's liabilities are made up of primarily low risk sources of funding.

Loan Level: VPBN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: VPBN's loans are broadly funded by customer deposits.

Level of Bad Loans: VPBN has an appropriate level of bad loans (0.42%)


Next Steps

Dividend

What is VP Bank's current dividend yield, its reliability and sustainability?

3.31%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.7%markettop25%3.3%industryaverage3.9%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: VPBN's dividend (3.31%) is higher than the bottom 25% of dividend payers in the Swiss market (1.71%).

High Dividend: VPBN's dividend (3.31%) is low compared to the top 25% of dividend payers in the Swiss market (3.34%).


Stability and Growth of Payments

Stable Dividend: VPBN's dividend payments have been volatile in the past 10 years.

Growing Dividend: VPBN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.4%), VPBN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VPBN's dividends in 3 years are forecast to be covered by earnings (55.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Paul Arni (55yo)

0.3yrs

Tenure

0

Mr. Paul H. Arni has been Chief Executive Officer of VP Bank AG since October 1, 2019. Mr. Arni serves as the Managing Director and Chief Operating Officer of Private Banking at Credit Suisse AG, and was t ...


Leadership Team

NamePositionTenureCompensationOwnership
Paul Arni
Chief Executive Officer0.3yrsno datano data
Siegbert Näscher
CFO, Deputy CEO & Member of Executive Board7.8yrsno data0.11% CHF1.1m
Monika Vicandi
General Counsel3.1yrsno data0.084% CHF831.0k
Christoph Mauchle
Head of Client Business & Member of Executive Board7.1yrsno data0.39% CHF3.9m
Felix Brill
Chief Investment Officer & Member of Executive Board1.9yrsno datano data
Urs Monstein
COO & Member of Executive Board1.8yrsno datano data
Stefan Schwitter
Head of Group Investment Center3.8yrsno datano data
Markus Reinacher
Head of Group Compliance0yrsno datano data
Rudolf Seuhs
Head of Corporate Communications0yrsno datano data
Cécile Bachmann
Head of Group Communications & Marketing1.1yrsno datano data

2.5yrs

Average Tenure

54.5yo

Average Age

Experienced Management: VPBN's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fredy Vogt
Chairman of the Board7.8yrsCHF645.00k0.16% CHF1.6m
Markus Hilti
Vice Chairman of the Board4.1yrsCHF130.00k0.11% CHF1.1m
Heinz Batliner
Chairman Emeritus24.1yrsno datano data
Thomas Meier
Vice Chairman of the Board0.9yrsCHF73.00k0.0020% CHF19.5k
Gabriela Payer
Director3.8yrsCHF140.00k0.019% CHF186.3k
Teodoro Cocca
Director8.8yrsCHF130.00k0.037% CHF365.0k
Beat Graf
Director5.8yrsCHF145.00k0.020% CHF198.1k
Michael Riesen
Director5.8yrsCHF160.00k0.028% CHF277.7k
Ursula Lang
Director3.8yrsCHF160.00k0.012% CHF117.8k

5.8yrs

Average Tenure

57yo

Average Age

Experienced Board: VPBN's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

VP Bank AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: VP Bank AG
  • Ticker: VPBN
  • Exchange: SWX
  • Founded: 1956
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: CHF994.204m
  • Shares outstanding: 5.98m
  • Website: https://www.vpbank.com

Number of Employees


Location

  • VP Bank AG
  • Aeulestrasse 6
  • Vaduz
  • 9490
  • Liechtenstein

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0RG7LSE (London Stock Exchange)Bearer SharesGBCHFJan 1992
VPBNSWX (SIX Swiss Exchange)YesClass A Registered SharesCHCHFMay 2000
3VFNDB (Deutsche Boerse AG)YesClass A Registered SharesDEEURMay 2000
VUPP.FOTCPK (Pink Sheets LLC)YesClass A Registered SharesUSUSDMay 2000

Biography

VP Bank AG provides asset-management and investment-advisory services for private and institutional investors, and financial intermediaries in Liechtenstein and internationally. The company offers private banking services, such as asset management, investment advisory, financing, and wealth planning services; manages funds; lending services; and investment advisory services. It also provides e-banking, securities trading, and payment services. In addition, the company offers financing of residential properties for private clients, execution and settlement services, safekeeping and trustee services, and money-market and interbank services; and grants commercial loans to commercial clients, as well as is involved in foreign exchange dealings on behalf of private clients. Further, it offers advisory and custodian bank services. VP Bank AG was founded in 1956 and is headquartered in Vaduz, Liechtenstein. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 22:30
End of Day Share Price2020/02/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.