Vontobel sees strong inflows in second half
The Zurich-based bank reported "decent inflows", according to Keefe Bruyette and Woods analyst Matthew Clark, led by the private banking division, which posted inflows of CHF1bn in the second half of the year, "broadly in line with expectations", said KBW.
Of the total CHF 3.9bn inflow of new money in 2008, CHF 2.8bn was attributable to inflows from private clients while the institutional business acquired CHF1.1bn of new client assets.
The private bank is getting a new manager - Peter Fanconi, current chief executive of Vontobel subsidiary Harcourt, who will take over the management as of March 1 2009.
The current head of private banking, Walter Thoma, will focus on relationship management in future and will lead a new competence centre for key international clients.
The private banking operations in Germany were significantly expanded in 2008, with a new office in Hamburg and a office set to open in Munich this spring.
Vontobel said as a result of the turbulence in the markets assets under management declined by 22% last year to CHF 62.4bn.
The bank's board of directors is proposing a dividend of CHF1.20 to shareholders, 40% lower than KBW estimated, but still provides a 7% dividend yield.
Herbert Scheidt, chief executive of Vontobel Group said in a press release this morning: "By implementing targeted measures to increase efficiency , we will also improve our cost base by at least CHF40-50m by the end of 2010. At the same time, we will continue our efforts to prudently grow our business in Switzerland and internationally and will further realise the benefits of our large-scale investment in our infrastructure."
Vontobel shares have fallen 78% since peaking at 77.30 Swiss francs at end-May 2007, to CHF18 this morning at 11.55GMT.
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