01.03.2018 – 06:56

VZ Holding AG

EQS-Adhoc: VZ Holding AG: VZ Group continues to grow

EQS Group-Ad-hoc: VZ Holding AG / Key word(s): Final Results
VZ Holding AG: VZ Group continues to grow

01-March-2018 / 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 continues to grow

Zurich, 1 March 2018 - VZ Group's operating revenues grew 10.3 % in comparison
to the previous year to CHF 260.2 million. Due to the additional provision of
CHF 5.2 million, net profit grew less strongly at 3.2 % and reached CHF 86.8
million. CEO Matthias Reinhart expects revenues and net profit to continue
growing in the current year.

Operating revenues +10 per cent
Relative to 2016, revenues grew 10.3 %, specifically from CHF 235.9 million to
CHF 260.2 million. As expected, growth levelled off slightly during the second
half of the year. Net profit grew less strongly at 3.2 % to reach CHF 86.8
million in the year under report. This was due in part to the additional
provision of CHF 5.2 million related to uncertainties regarding value added tax,
which VZ Group reported in November. These additional costs had a one-off impact
on net profit.

Margins remain under pressure...
Pressure on margins has been high for a number of years. Mandates with all-in
fees are becoming increasingly popular in asset management, which leads to lower
transaction revenues. Negative interest is an additional burden on revenues.
Together, these factors further reduced the margin on assets under management in
the year under report.

... while the client base keeps growing
Trust in VZ Group's services is directly expressed by the rise in the volume of
assets under management. These assets grew from CHF 18.4 billion to reach CHF
21.8 billion, whereby net new money accounted for CHF 2.3 billion. All-in fees
make the management of assets predictable and transparent. This is attractive
and helps the group to gain even more clients. VZ is confident that the inflow
of new clients will offset pressure on margins in the longer term. At the same
time, more activity has been recorded on the consultancy side. In particular,
the discussion about the financial health of the Swiss pension system has
unsettled many clients, increasing their demand for sound advice.

Sound balance sheet and higher dividend
Relative to the start of the year, the balance sheet total rose 11.0 % to CHF
2.7 billion. The equity and core capital ratios are significantly above the
industry average at 17.0 % and 30.4 %, respectively. The Board of Directors
proposes a dividend of CHF 4.35 per share (2016: CHF 4.20) to the Shareholders'
Meeting, in line with its policy of distributing around 40 % of profits to
shareholders.

Outlook
«The broader client base and higher volumes indicate that revenues and net
profit will continue to grow in the current year, in spite of sinking margins -
provided that financial markets develop in a stable manner», says Matthias
Reinhart, Chairman of VZ Group's Executive Board. «We are expecting costs to
keep rising in step with revenues, despite the fact that we will continue to
invest in digitalisation in order to extend our competitive advantage.»

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: www.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 Mr Pavone or Ms Märk:

Contacts
Adriano Pavone 
Head of Media Relations 
Phone +41 44 207 25 22  
adriano.pavone@vzch.com

Petra Märk
Investor Relations
Phone +41 44 207 26 32 
petra.maerk@vzch.com

VZ Group
VZ Group is an independent Swiss financial service company listed on the SIX
Swiss Exchange. Pension and estate planning as well as asset management for
individuals and insurance and pension fund management for companies are VZ
Group's core services. VZ Holding is headquartered in Zurich, and VZ has 30
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 up-date forward-looking statements or to
adapt them to future events or developments.

Key figures

Income statements(CHF '000)

                          2017    2016

Operating revenues        260'235 235'865

Operating expenses        149'194 128'660

Operating profit (EBITDA) 111'041 107'205

Net profit1               86'823  84'124

1 Including minority interests.

Balance sheets(CHF '000)

             31.12.2017 31.12.2016

Total assets 2'703'475  2'434'598

Equity1      459'470    420'056

Net cash2    366'001    389'595

1 Including minority interests.
2 Cash & cash equivalents, short-term investments, marketable securities,
financial assets less current liabilities due to customers, long-term debts and
due to banks.

Equity key figures

                                            31.12.2017 31.12.2016

Leverage ratio1                             17.0%      17.3%

Common equity tier 1 capital ratio (CET 1)2 30.4%      31.7%

Total eligible capital ratio (T1 & T2)2     30.4%      31.7%

1 Equity compared to the consolidated balance sheet total.
2 VZ Group applies the international standard approach for credit risks (SA-BIZ)
for the first time. The previous year's figure has been adjusted accordingly.

Funds under management(CHF million)

                        31.12.2017 31.12.2016

Assets under Management 21'775     18'415


Employees

                            31.12.2017 31.12.2016

Full-time equivalents (FTE) 840.4      771.5

Additional features:


Document:http://n.eqs.com/c/fncls.ssp?u=RKOOUYHSND
Document title: Press release 01032018
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End of ad hoc announcement------------------------------------------------------

Language: English

Company:  VZ Holding AG

          Beethovenstrasse 24

          8002 Zurich

          Switzerland

Phone:    +41 44 207 27 27

Fax:      +41 44 207 27 28

E-mail:    ir@vzch.com

Internet: www.vzch.com

ISIN:     CH0028200837

Listed:   SIX Swiss Exchange



 

End of Announcement EQS Group News Service

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659079  01-March-2018 CET/CEST