Investors profile
Investors profile
An overview of Valiant for investors and analysts.
About us
Increase in profitability and five strategic thrusts
The Strategy 2025–2029 builds on the investment of CHF 100 million in digitalisation and expansion since 2016 and stays true to the successful, simple business model. Increased profitability is the overarching goal. Valiant wants to generate a return on equity that is higher than capital costs and thus create economic value. In so doing, the focus will be on simplicity, earnings diversification, greater efficiency, employee advancement and sustainability. The key factors for success remain a local presence and personal advice.
1. Inspire with simplicity
Valiant wants to inspire its clients. They must be able to contact their bank easily – through any method or channel. “The products and services will continue to be based on simplicity in line with our value proposition “We are simply a bank”. That includes a balanced combination of personal advice and self-service based on the needs of our clients,” says Ewald Burgener. In parallel, pricing must be clear and transparent for clients.
2. Diversify earnings
Valiant wants to continue to grow. As an SME bank with a longstanding tradition, the value proposition for SMEs needs to be broadened. This applies particularly to entrepreneurs, who must be supported in their daily work with a comprehensive offering. Valiant will also develop its advisory service for asset accumulation and pension provision for private clients. An expansion of the range of services in the partner business is also planned.
3. Increase efficiency
Valiant has already achieved substantial, annually recurring savings in the current strategy period. The bank will continue to closely monitor cost development going forward. In an environment of constantly changing client needs, the whole company is focusing on lean, consistent processes and increased automation. Simplified processes and standard interfaces will raise productivity. “That way we ensure that we have the necessary freedom to act for the future and use the skills and knowledge of our employees in a targeted way,” stresses Markus Gygax.
4. Acquire and develop employees
Valiant is an attractive employer and has very well qualified staff. Valiant does not just want to retain its staff but to develop them in a focused way. The employees’ individual development potential is expanded accordingly. “We also want to orient our corporate culture towards the strategic goals of simplicity, efficiency and earnings diversification,” adds Ewald Burgener.
5. Promote sustainability
Valiant is aware of its responsibility in dealing with people, resources and corporate governance and acts accordingly. Valiant ensures its appeal to investors by adhering to ESG guidelines. Business activities are being oriented more closely towards sustainability. CO2 management is at the forefront as a key element of this. Furthermore, Valiant promotes the equal treatment of its staff and establishes flexible models to improve the compatibility of family and career. Through these measures, Valiant aims to increase the share of women in management positions.
Add value for shareholders
“We will add value for our shareholders and increase the dividend annually through the targeted growth and efficiency improvements,” says Markus Gygax. Valiant has set itself the goal of achieving a return on equity that exceeds capital costs. The total capital ratio is to remain between 15 and 17% in future, and a payout ratio of at least 50% is being targeted. Valiant wants to achieve all this without changing its prudent risk policy.
Stable and sustainable dividend policy
Valiant pursues a stable dividend policy. In 2019, Valiant increased the target payout ratio from 50% to 70% of net profit, with a dividend of at least CHF 5.00 per share.
Dividends
Valiant has paid out stable or increased dividends ever since it was founded in 1997.
| Year | Dividend | Payout Ratio | Dividend yield |
|---|---|---|---|
| 2023 | 5.50 | 60% | 5.8% |
| 2022 | 5.00 | 61% | 5.0% |
| 2021 | 5.00 | 64% | 5.5% |
| 2020 | 5.00 | 65% | 5.8% |
| 2019 | 5.00 | 65% | 5.1% |
| 2018 | 4.40 | 58% | 4.1% |
| 2017 | 4.00 | 53% | 3.8% |
| 2016 | 3.80 | 51% | 3.7% |
| 2015 | 3.60 | 50% | 3.1% |
| 2014 | 3.20 | 54% | 3.9% |
| 2013 | 3.20 | 55% | 4.0% |
| 2012 | 3.201 | 40% | 3.7% |
| 2011 | 3.202 | 40% | 2.7% |
| 2010 | 3.20 | 41% | 2.4% |
| 2009 | 3.20 | 36% | 1.6% |
| 2008 | 3.10 | 34% | 1.6% |
2 distributions from capital contribution reserves
Very high asset quality
The quality of the Valiant loan portfolio is very high. 98% of our loans are covered. 93% of the mortgages are first-tier. The loan-to-value of the mortgage portfolio amounts to 62%, and the average residual term stands at a low around 4 years. Valiant is not exposed to regions subject to steep house price inflation. Around 70% of our mortgages were originated in the region of Bern, Lucerne and Aargau.
Non-performing loans amount to 0.16% of total loans. Value adjustments for credit risk are 0.39% of total loans.
Low risk profile
Valiant’s risk profile is low. We are solely active in the retail banking business, with long-term customer relationships in Switzerland. Our main income sources – mortgages and commissions - provide very transparent, stable earnings. There is no proprietary trading.
The low risk profile builds on a restrictive lending policy, a diversified client portfolio, and a successful asset & liability management. Despite a long history of takeovers, there is no goodwill on the balance sheet. The increased lending volumes no not compromise the very high quality of loans.
Find more information about our asset quality and risk profile in our latest investor presentation.
More stable and diversified funding
At Valiant, we are making the most of our various funding options. In the current low interest rate environment, we aim to further stabilise our funding and diversify the instruments we use. To achieve this, we will continue to increase the amount of stable client deposits and reduce our unsecured funding. In the medium term, we will also add to our secured funding through our Valiant covered bonds programme.
Further reductions in financing costs
Refinancing is a key way of reducing interest costs despite the low interest rate environment and making interest margins more resilient. Since 2013, we have reduced interest expense by more than two thirds. Funding at very low rates will further reduce Valiant’s interest expense going forward.
Find more information about our funding in our latest investor presentation.
We know our clients, and our clients know us. Our clearly defined geographical area of activity, our positioning as a financial services provider, and the close relationships with our clients are the key features of our simple and responsible business model.
Sustainability criteria are rooted in our lending policy
The client deposits and savings entrusted to us are funding home owners and SME. Our lending is broken down into many small and medium-sized amounts. Thanks to our regional roots and close client relationships we know the properties and businesses that we finance very well. In line with our careful lending policy, we take a cautious approach towards sectors that have questionable ecological, economic and social aspects.
Valiant operates exclusively in Switzerland
Given the very stringent regulatory environment in Switzerland, our approach to many ecological, economic and social aspects already meets relatively high standards. And given Valiant’s simple business model, we do not finance international projects, which would have to be critically examined in terms of fundamental human rights, large-scale environmental pollution, and forced or child labour. Exposure to sustainability risks is also low.
Improved earnings power despite low-interest environment
| Balance sheet (in CHF bn) | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|
| Total assets | 36.1 | 35.7 | 35.6 | 33.2 | 29.9 | 27.4 |
| Loans – of which mortgages |
29.7 28.2 |
28.7 27.1 |
27.2 25.7 |
25.9 24.2 |
24.8 23.3 |
24.0 22.5 |
| Due to clients | 22.2 | 22.6 | 22.1 | 21.0 | 19.2 | 18.3 |
| Client assets | 32.7 | 32.3 | 32.9 | 30.3 | 28.3 | 26.4 |
| Equity capital | 2.576 | 2.467 | 2.399 | 2.361 | 2.318 | 2.267 |
| Income statement (in CHF m) | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|
| Total operating income | 546 | 448 | 431 | 413 | 405 | 402 |
| Operating expenses | 290 | 268 | 254 | 242 | 234 | 226 |
| Operating profit | 232 | 159 | 144 | 147 | 143 | 152 |
| Consolidated net profit | 144 | 130 | 123 | 122 | 121 | 120 |
| Key ratios | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|
| Net interest margin | 119bp | 98bp | 99bp | 105bp | 110bp | 112bp |
| Cost/income ratio | 51.3% | 57.7% | 57.2% | 56.5% | 57.0% | 55.9% |
| Non-performing loans/Total loanstd | 0.16% | 0.16% | 0.15% | 0.11% | 0.09% | 0.13% |
| Return on equity | 5.7% | 5.3% | 5.2% | 5.2% | 5.3% | 5.4% |
| Equity capital | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|
| Total capital ratio | 16.3% | 15.8% | 16.0% | 16.1% | 16.5% | 16.5% |
| Headcount | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|
| Employees | 1136 | 1110 | 1130 | 1061 | 1045 | 1013 |
| Full-time equivalents | 1003 | 981 | 995 | 937 | 918 | 890 |
