Banque Havilland Liechtenstein confirms the positive development of the past years in the first half of 2021
Banque Havilland (Liechtenstein) AG has been able to steadily increase its profits in last years, confirming the adopted strategy. In the last financial year, the 10-year record profit increased again by 4.2 percent.
This trend continued with the half-year figures. The half-year result 2021 amounted to 1.4 million Swiss francs after a loss of 0.6 million Swiss francs in the same period of the previous year, due to considerable market fluctuations during the peak of the Corona crisis. The half-year result 2021 is only 9.2 percent below the record result of the entire financial year 2020.
Compared to the same period of the previous year, the profit from ordinary activities in the first half 2021 rose by 56.4 percent to 6.3 million Swiss francs. The interest result, the commission result and especially the result from trading activities with clients were able to contribute to this development. At the same time, operating expenses rose by only 5.6 percent to 4.8 million Swiss francs.
The bank continues to have a high equity basis with a Tier 1 ratio of 20 percent, an exceptionally good leverage ratio of 20 percent and an impressive liquidity coverage ratio of 255 percent. CEO Marc Arand adds: “I would like to thank our clients for the trust they have put in us and our employees for their outstanding commitment. Our results encourage us in our decision to compete as an international, dynamic and sound private bank. Our target clients are often either entrepreneurs or come from an entrepreneurial family and want a dialogue on an equal footing. They are looking for a bank that can provide the service they expect on an ongoing basis. We are daily in the competition with our peers with our entrepreneurial spirit.
Our clientele wants a bank that understands and shares their needs and we are responding to it with an exceptional client focus. Our founders are entrepreneurs themselves and this is deeply integrated in the bank’s DNA. Our business model is based on the values of our founders: responsibility, fairness, diligence and integrity.
These values form the foundation for our objective, namely to build up the wealth of our clientele and secure it for later generations. In today’s competitive environment, many products are simply interchangeable; however, many clients miss like-minded and equal decision makers and advisors in the banks.”
“I am convinced that we can continue the trend.”
The positive half-year results of Banque Havilland (Liechtenstein) AG do not come from nowhere, as the CEO explains in an interview.
What supported the 2021 half-year result?
Marc Arand: The good half-year result is based on the steady implementation of our strategy as a dynamic boutique bank with customised wealth management solutions and we are in the competition with a very high quality of service. The continuous growth in assets under management, the associated higher trading volume and the increasing loans to our clients confirms our strategy.
In your opinion, is the trend continuing?
Absolutely, we have laid the solid foundations for continued success. We only remain competitive in the long term if we constantly question our daily actions. The feedback from our customers is very positive and I am convinced that we can continue the trend.
What does the positive development of the business figures mean to you as CEO?
The development of the bank fills me with gratitude for the trust put in us by our clients and at the same time with pride for the work done by our employees. It also confirms my opinion that the strategic measures are right.
What challenges does Bank Havilland currently face?
Ultimately, our challenges are similar to those of our competitors. Our ambition over the next few years is to achieve a higher market share. The private banking industry has been in a state of upheaval for many years now due to far-reaching or drastic regulations and the financial market environment characterised by negative interest rates. We see increased costs are rising and the pressure on margins, as the net return for clients, i.e. the return after deduction of banking costs, has fallen while the risk remains the same. This has led to a meltdown of relative returns in private banking for both clients and banks. The current Corona crisis amplifies this trend.
“We can only remain competitive in the long term if we constantly question our daily actions.
What is your approach to countering this crisis?
Private Banks have responded to this pressure by industrialising their processes. We should not confuse industrialisation with innovation or even digitalisation. Of course, these processes overlap, but the big difference is in the client experience. While customers benefit from innovation and from digitisation either from a new business field or a new IT concept, industrialisation focuses on reducing costs through automated processes and standardisation within the company. The biggest challenge is the continuous development of a competitive corporate culture supported by innovation and digitalisation.
“The biggest challenge is the continuous development of a competitive corporate culture supported by innovation and digitalisation.”
What is the outlook for the second half of the year?
Certainly very positive based on the current market environment. The trend of the first six months has been confirmed in July and August. We have been able to steadily increase the result in the past years and this year we are convinced that we will again clearly exceed the result of the financial year 2020.
(source: Wirtschaft Regional (German version))