SWX:VPBN

Stock Analysis Report

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Executive Summary

VP Bank AG, together with its subsidiaries, provides asset-management and investment-advisory services for private and institutional investors, and financial intermediaries in Liechtenstein, Switzerland, rest of Europe, and internationally. More Details


Snowflake Analysis

Undervalued with excellent balance sheet 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

-1.6%

VPBN

2.8%

CH Capital Markets

-1.9%

CH Market


1 Year Return

-32.1%

VPBN

-2.5%

CH Capital Markets

1.7%

CH Market

Return vs Industry: VPBN underperformed the Swiss Capital Markets industry which returned -3.5% over the past year.

Return vs Market: VPBN underperformed the Swiss Market which returned 2.3% over the past year.


Shareholder returns

VPBNIndustryMarket
7 Day-1.6%2.8%-1.9%
30 Day-8.2%1.7%-3.1%
90 Day-10.2%-3.0%-1.6%
1 Year-29.0%-32.1%0.4%-2.5%5.2%1.7%
3 Year-13.2%-22.7%-17.6%-25.2%17.9%5.6%
5 Year60.8%31.8%-18.6%-33.6%35.0%12.5%

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?

18.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VPBN (CHF107.4) is trading below our estimate of fair value (CHF131.88)

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 (12.2x) compared to the CH Capital Markets industry average (15.5x).

PE vs Market: VPBN is good value based on its PE Ratio (12.2x) compared to the Swiss market (22x).


Price to Earnings Growth Ratio

PEG Ratio: VPBN is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: VPBN is good value based on its PB Ratio (0.7x) compared to the CH Capital Markets industry average (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?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VPBN's forecast earnings growth (14% per year) is above the savings rate (-0.2%).

Earnings vs Market: VPBN's earnings (14% per year) are forecast to grow faster than the Swiss market (11.4% per year).

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

Revenue vs Market: VPBN's revenue (2% per year) is forecast to grow slower than the Swiss market (4.6% per year).

High Growth Revenue: VPBN's revenue (2% 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 (6.5%).


Next Steps

Past Performance

How has VP Bank performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VPBN has a large one-off loss of CHF20.0M impacting its June 30 2020 financial results.

Growing Profit Margin: VPBN's current net profit margins (15.7%) are lower than last year (18.9%).


Past Earnings Growth Analysis

Earnings Trend: VPBN's earnings have grown by 2.8% 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 (-13.5%) over the past year, making it difficult to compare to the Capital Markets industry average (12.2%).


Return on Equity

High ROE: VPBN's Return on Equity (5.3%) is considered low.


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


Financial Institutions Analysis

Asset Level: VPBN's Assets to Equity ratio (13.8x) is moderate.

Allowance for Bad Loans: VPBN has a low allowance for bad loans (69%).

Low Risk Liabilities: 92% of VPBN's liabilities are made up of primarily low risk sources of funding.

Loan Level: VPBN has an appropriate level of Loans to Assets ratio (45%).

Low Risk Deposits: VPBN's Loans to Deposits ratio (52%) is appropriate.

Level of Bad Loans: VPBN has an appropriate level of bad loans (0.8%).


Next Steps

Dividend

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

5.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VPBN's dividend (5.12%) is higher than the bottom 25% of dividend payers in the Swiss market (1.88%).

High Dividend: VPBN's dividend (5.12%) is in the top 25% of dividend payers in the Swiss market (3.69%)


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 (62.7%), 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 (53% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Paul Arni (56 yo)

1

Tenure

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Arni
CEO & Member of Executive Board1yrno datano data
Urs Monstein
COO & Member of Executive Board2.42yrsno datano data
Markus Reinacher
Head of Group Complianceno datano datano data
Rudolf Seuhs
Head of Corporate Communicationsno datano datano data
Cécile Bachmann
Head of Group Communications & Marketing1.75yrsno datano data
Dominique Christen
Head of Group Human Resources2.58yrsno datano data
Viktor Büchel
Head of IGT Intergestions Trust Regno datano datano data
Clare Chan
Head of Hong Kong Representative Office and MD of VP Wealth Management (Hong Kong) Ltdno datano datano data
Nikolaus Blöchlinger
Head of Group Internal Auditno datano datano data
Martin Engler
Head of Private Bankingno datano datano data
Andreas Benz
Head of Group Information Technologyno datano datano data
Eduard von Kymmel
Head of VP Fund Solutions (Luxembourg) SAno datano datano data

2.1yrs

Average Tenure

58yo

Average Age

Experienced Management: VPBN's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fredy Vogt
Director8.75yrsCHF642.00kno data
Markus Hilti
Vice Chairman of the Board4.75yrsCHF130.00kno data
Heinz Batliner
Chairman Emeritus24.75yrsno datano data
Thomas Meier
Chairman of the Board0.50yrCHF190.00kno data
Gabriela Payer
Director4.5yrsCHF140.00kno data
Beat Graf
Director6.5yrsCHF145.00kno data
Michael Riesen
Director6.5yrsCHF160.00kno data
Ursula Lang
Director4.5yrsCHF160.00kno data
Katja Rosenplänter-Marxer
Director0.50yrno datano data

4.8yrs

Average Tenure

58yo

Average Age

Experienced Board: VPBN's board of directors are considered experienced (4.8 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: CHF649.304m
  • Shares outstanding: 6.05m
  • 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, together with its subsidiaries, provides asset-management and investment-advisory services for private and institutional investors, and financial intermediaries in Liechtenstein, Switzerland, r ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 20:50
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.