Report of the Executive Board

01.

Dear business partners, dear customers, ladies and gentlemen,

With its fifth record result in a row, V-Bank has once again closed a very satisfactory financial year. In 2024, the "year of investment," we invested around €15 million in securing the future of V-Bank, with a focus on IT, processes, and human resources. Nevertheless, we managed to generate pre-tax earnings of €54.4 million, over 42 percent more than in the (record) previous year. 

A particular milestone was the granting of a license by BaFin and the ECB to hold cryptocurrencies and digital assets in custody.

We have set ourselves the goal of being the quality leader. In addition to developing innovative solutions and providing personal support, this also means being a stable and secure bank for our business partners. In addition to the well-known GBB rating for deposit protection, we therefore initiated an additional rating process with the renowned rating agency Moody's in 2023. The result is an A rating, of which we are quite proud.
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The 2024 fiscal year

V-Bank closed the 2024 financial year with its fifth record result in a row and increased its pre-tax profit by more than 42 percent. The bank generated pre-tax earnings of EUR 54.4 million in 2024 (2023: EUR 38.2 million). It significantly improved both its operating figures and its key business data. 

The main growth drivers were the continued expansion of the customer base (64,400 customers, almost 15 percent more than in the previous year), strong growth in assets under custody (EUR 57.2 billion, 26.6 percent above the previous year) and the corresponding growth in commission and interest income (gross surplus, +31 percent compared to the previous year). 

Business results at a glance:

  • Earnings before taxes (EBT): €54.4 million, +42.2 percent (€16.2 million increase)
  • Net income: €31.1 million, +27.0 percent (€6.6 million increase)
  • Return on equity: 22.9 percent, +1.1 percentage points
  • Cost-income ratio: 48.3 percent, -4.0 percentage points

The business development was accompanied by corresponding growth in personnel. At the end of the year, the number of employees was 142, significantly higher than a year earlier (end of 2023: 134).

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More than just business figures

In fiscal year 2023, V-Bank celebrated its 15th anniversary. It "celebrated" by doing what it has been doing since its inception: preparing itself for the future – for its business partners.

And that future will be increasingly digital. Nevertheless, our employees will continue to uphold the personal and intensive support of our business partners as usual. A central and strategic field of digitalization for us is a modern data and interface structure that meets all the requirements of open banking and smart data. We are continuing to work on this this year. With our strategic partner Avaloq, we have achieved a real technological breakthrough. It will soon enable us to make strategic further developments, such as connecting portfolio management, CRM, or other third-party systems. Last but not least, this infrastructure will also allow us to further optimize the bank's business operations.

We have grown strongly and continue to grow. This year, we will therefore continue to focus on motivated and satisfied employees who are a good fit for us. We will continue to hire in 2024.

With our representative office in Zurich's Seefeldstrasse, V-Bank has opened its first location outside its home market of Germany. It will serve as a point of contact for the approximately 60 Swiss asset managers and family offices of the Munich-based specialist bank who are already customers today. From its new domicile, V-Bank intends to expand its business – custodian bank services for Swiss asset managers in Germany.

We have set ourselves the goal of being the quality leader. In addition to developing innovative solutions and providing personal support, this also means being a stable and secure bank for our business partners. In addition to the well-known GBB rating for deposit protection, we therefore initiated an additional rating process with the renowned rating agency Moody's in 2023. The result is an A rating, of which we are quite proud.
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In brief

We are looking ahead with optimism. Our business model is stable and designed to be resilient and function well, even and especially in difficult market situations. We also draw enormous strength from knowing that we have built trust among our business partners, shareholders, and, last but not least, our employees, which we can count on.

We cannot yet say whether our milestone year 2025 will be another record year. However, it has already gotten off to a very successful start.

Our customers appreciate our work and have confirmed this once again with an even better result in the customer survey.

Our business model has begun to unfold its full potential. We therefore have a positive outlook for the future – even though we know that important milestones still lie ahead.

Our company is growing and developing steadily: strategically, technologically, in terms of personnel, and, last but not least, in terms of business results. Thank you for joining us on this successful journey. And thank you to all our employees who have made the success story of recent years possible.

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Lars Hille

Chairman of the Board

Lars Hille

Florian Grenzebach

Chief Sales Officer

Lars Hille

Stefan Lettmeier

Chief Operating Officer

Lars Hille