Half Year 2026 VZ Holding AG Earnings Call

August 14, 2026

Speaker #1: Ladies and gentlemen, welcome to the VZ Holding Analyst Conference Call on the 2026 half-year results. I am Sandra, the call's co-operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded.

Operator: Ladies and gentlemen, welcome to the VZ Holding analyst conference call on the 2026 H1 results. I am Sandra, the conference call operator. I would like to remind you that all participants are in listen only mode and the conference is being recorded. The presentation will be followed by a question and answer session. If you would like to ask a question from the webinar, you may click the Q&A button on the left side of your screen and then click raise your hand button. For written questions, click on the Q&A button on the text button and type your question. If you are connected via phone, you can just press star and one. For operator assistance, press the operator assistance button on the left side of your screen or star zero on your telephone.

Speaker #1: The presentation will be followed by a question-and-answer session. If you would like to ask a question during the webinar, you may click the Q&A button on the left side of your screen and then click the "Raise your hand" button.

Speaker #1: For written questions, click on the Q&A button on the text bar and type your question. If you are connected via phone, just press star and one.

Speaker #1: For operator assistance, press the operator assistance button on the left side of your screen or star zero on your telephone. At this time, it is my pleasure to hand over to Mr. Giulio Viterelli, CEO of VZ Holding.

Operator: At this time, it is my pleasure to hand over to Mr. Giulio Vitarelli, CEO of VZ Holding. Please go ahead, sir.

Speaker #1: Please go ahead, sir.

Speaker #2: Thank you, Sandra, and good morning. Welcome to the presentation of our half-year 2026 results and our outlook. I assume that everyone has been able to download the presentation, which is available on our website or via the link you’ll find in the invitation for this call.

Giulio Vitarelli: Thank you, Sandra, and good morning, and welcome to the presentation of our H1 2026 results and of our outlook. I assume that everyone has been able to download the presentation, which is available on our website or via the link you will find in the invitation for this call. I will guide you through the presentation today together with our Chief Financial Officer, Rafael Pfaffen. Rafael will take over agenda item 2, financials, and I will take you through agenda items 1 and 3. Rafael and I will be pleased to answer your questions at the end of the presentation. Let's start our presentation with the summary on page 3 of the presentation. As you have seen in the first H1 of 2026, our business continued to perform well.

Speaker #2: I'll guide you through the presentation today together with our Chief Financial Officer, Rafael Pfaffen. Rafael will take over agenda item two—financials—and I will take you through agenda items one and three.

Speaker #2: Rafael and I will be pleased to answer your questions at the end of the presentation. So let's start our presentation with the summary on page 3 of the presentation.

Speaker #2: Yeah, as you have seen in the first half of 2026, our business continued to perform well. The strong growth was supported by positive financial markets, of course, but also by the sustained demand for our consulting expertise.

Giulio Vitarelli: The strong growth was supported by positive financial markets, of course, but also by the sustained demand for our consulting expertise. We onboarded 5,100 new platform clients in the H1 of the year. In parallel, we again increased platform usage among existing clients. As you know, this is also one of the key drivers of our long-term growth story. To meet the sustained demand for our consulting services, we increased our front end consulting capacity by 8.5% to an average of 281 FTEs for the year 2026. Also for 2027 and the years beyond, we expect to further expand our consulting capacity. In 2027, we plan to expand the capacity by around 8% and to bring it to a total of 303 FTEs.

Speaker #2: We onboarded 5,100 new platform clients in the first half of the year, and in parallel, we again increased platform usage among existing clients. As you know, this is also one of the key drivers of our long-term growth story.

Speaker #2: To meet the sustained demand for our consulting services, we increased our front-end consulting capacity by 8.5%, to an average of 281 FTEs for the year 2026.

Speaker #2: And also for 2027 and the years beyond, we expect to further expand our consulting capacity. In 2027, we plan to expand the capacity by around 8% and to bring it to a total of 303 FTEs.

Speaker #2: Analyzed net new money per consulting FTE, so that 23.5 million Swiss francs, which is above the five-year average. This confirms the quality of our consulting capacity growth and the continued strength of our client inflow.

Giulio Vitarelli: Annualized net new money per consulting FTE stood at CHF 23.5 million, which is above the five-year average. This confirms the quality of our consulting capacity growth and the continued strength of our client inflow. At the same time, this figure is supported by, of course, favorable market sentiment, which is reflected also in client behavior. In Germany, we are seeing similar growth figures as in Switzerland, and the buildup of additional consulting capacity is progressing according to plan. In the UK, we fully acquired Blooming Group in May 2026, and the ramp-up of smaller IFA acquisitions is on the way. We completed one acquisition in the H1 of the year, and are in the final stages of completing two more acquisitions.

Speaker #2: At the same time, this figure is supported by, of course, favorable market sentiment, which is also reflected in client behavior. In Germany, we are seeing similar growth figures as in Switzerland, and the build-up of additional consulting capacity is progressing according to plan.

Speaker #2: And in the UK, we fully acquired Loomin Group in May 2026, and the ramp-up of smaller IFA acquisitions is underway. We completed one acquisition in the first half of the year and are in the final stages of completing two more acquisitions.

Speaker #2: At the same time, we are building a pipeline of acquisition targets to increase the frequency of acquisitions over the coming years, as previously outlined.

Giulio Vitarelli: At the same time, we are building a pipeline of acquisition targets to increase the frequency of acquisitions over the coming years, as previously outlined. On the digital side, our VZ Financial Portal continued to strengthen its top 3 position across Swiss Digitalization Survey in a highly dynamic and competitive environment. On the right side of this page, we can look at the most important key financial figures. As you have seen, total revenues increased by 13.9% year-on-year to CHF 316.5 million. Total expenses increased by 10.4%, and EBIT margin improved to 48.4% from 46.8% in the H1 of 2025. Net profit increased by 17.7% to CHF 131.9 million, corresponding to a net profit margin of 41.7%. Our balance sheet remains robust, with an equity ratio of 13.8% and a high CET1 capital ratio of 28.4%.

Speaker #2: On the digital side, our financial portal continued to strengthen its top-three position across Swiss digitalization surveys in a highly dynamic and competitive environment.

Speaker #2: On the right side of this page, we can look at the most important key financial figures. As you have seen, total revenues increased by 13.9% year-on-year to CHF 316.5 million.

Speaker #2: Total expenses increased by 10.4%, and EBIT margin improved to 48.4% from 46.8% in the first half of 2025. Net profit increased by 17.7% to CHF 131.9 million, corresponding to a net profit margin of 41.7%.

Speaker #2: Our balance sheet remains robust, with an equity ratio of 13.8% and a high common capital ratio of 28.4%. Assets under management increased to CHF 67.7 billion from CHF 61.8 billion by the end of 2025, and net new money was CHF 3.3 billion in the first half of 2026.

Giulio Vitarelli: Assets under management increased to CHF 67.7 billion from CHF 61.8 billion by the end of 2025, and net new money was CHF 3.3 billion in the H1 of 2026. Let's go to the details on the following pages. On page 4, we see the different components of our revenue stream. Total revenues, as mentioned, increased by 13.9% year-on-year. The most important or the biggest revenue component, management fees on assets under management, increased by 18.2%. This development was driven by strong net new money and positive financial markets. Order management fees also developed positively with an increase of 15.3%. Consulting fees grew by 6.8%, showing again that demand for our consulting services remains solid. As you know, this consulting demand is the starting point for our future growth, because consulting projects lead to the introduction of clients to our platform services.

Speaker #2: So, let's go to the details on the following pages. On page four, we see the different components of our revenue streams. Total revenues, as mentioned, increased by 13.9% year-on-year.

Speaker #2: The most important, or the biggest revenue component, management fees on assets under management, increased by 18.2%. This development was driven by strong net new money and positive financial markets.

Speaker #2: Other management fees also developed positively, with an increase of 15.3%. Consulting fees grew by 6.8%, showing again that demand for our consulting services remains solid.

Speaker #2: As you know, this consulting demand is the starting point for our future growth, because consulting projects lead to the introduction of clients to our platform services.

Speaker #2: Banking income was almost stable, with an increase of 0.8%. We will see the details on the following page. The insurance result increased by 7.4%.

Giulio Vitarelli: Banking income was almost stable with an increase of 0.8%. We will see the details on the following page, and the insurance results increased by 7.4%. Let's turn to page 5, where we can take a closer look at banking income. As expected, interest business decreased by 2.4% year-on-year, but increased 9.1% compared with the H2 2025. The development of this line mainly depends on SNB interest rate decisions and on balance sheet growth. In the H1 2026, interest business accounted for 7.2% of total revenues. Trading results increased by 11.2%. As always, this revenue line can develop randomly because it is driven by financial market dynamics and client activity. Transaction fees decreased by 6.7% year-on-year. As you know, the downward trend in PM mandates continues because of the strong demand for our all-in fee models.

Speaker #2: So let's turn to page five, where we can take a closer look at banking income. As expected, interest business decreased by 2.4% year-on-year, but increased 9.1% compared with the second half of 2025.

Speaker #2: The development of this line mainly depends on S&B interest rate decisions and on balance sheet growth. In the first half of 2026, interest business accounted for 7.2% of total revenues.

Speaker #2: Trading result increased by 11.2%. As always, this revenue line can develop randomly because it's driven by financial market dynamics and client activity. Transaction fees decreased by 6.7% year on year.

Speaker #2: And as you know, the downward trend in PM and dates continues because of the strong demand for our all-in fee models. This trend is partly compensated by activity from self-directed clients.

Giulio Vitarelli: This trend is partly compensated by activity from self-directed clients. Trading results and transaction fees together accounted for 8% of total revenues in the H1 2026. On page 6, you can see the evolution of the balance sheet total and the net interest margin. The net interest margin peaked in the H2 2023 and stabilized in the H1 2026. Balance sheet total continued to increase and stood at CHF 8.76 billion at the end of June 2026. The growth of balance sheet is primarily attributable to the expansion of our client base and provided support to the interest business. Based on our current outlook, we expect net interest margin to remain stable in the H2 of the year, provided, of course, the interest rate environment and SNB exemption threshold remain stable. Turning to page 7, we see the development of net profit.

Speaker #2: Trading result and transaction fees together accounted for 8% of total revenues in the first half of 2026. On page six, you can see the evolution of the balance sheet total and the net interest margin.

Speaker #2: The net interest margin peaked in the second half of 2023 and stabilized in the first half of 2026. Balance sheet total continued to increase and stood at CHF 8.76 billion at the end of June 2026.

Speaker #2: The growth of the balance sheet is primarily attributable to the expansion of our client base and provided support to the interest business. Based on our current outlook, we expect net interest margin to remain stable in the second half of the year, provided, of course, the interest rate environment and S&B exemption threshold remain stable.

Speaker #2: Turning to page seven, we see the development of net profit. Net profit increased by roughly 18% year on year to CHF 131.9 million. As you can see, our half-year net profit has grown by more than 50% over the past three years.

Giulio Vitarelli: Net profit increased by roughly 18% year-on-year to CHF 131.9 million. As you can see, our half-year net profit has grown by more than 50% over the past three years. The net profit margin stood at 41.7%, compared with 40.3% in the H1 2025. This is clearly above our long-term minimum target of 38%. We are confident that we can continue to stay above this long-term minimum target also in the coming years, provided financial markets remain broadly stable. Our aim is to stay above this target in 9 out of 10 years. On page 8, we show our financial consulting figures. On the left side, you see our consulting capacity, and the development of our consulting capacity is going according to plan. In 2026, we expect an average of 281 FTEs working as financial consultants for new clients.

Speaker #2: The net profit margin stood at 41.7%, compared with 40.3% in the first half of 2025. This is clearly above our long-term minimum target of 38%.

Speaker #2: We are confident that we can continue to stay above this long-term minimum target in the coming years, provided financial markets remain broadly stable.

Speaker #2: Our aim is to stay above this target in nine out of ten years. On page eight, we show our financial consulting figures. On the left side, you see our consulting capacity.

Speaker #2: And the development of our consulting capacity is going according to plan. In 2026, we expect an average of 281 FTEs working as financial consultants for new clients.

Speaker #2: For 2027, we plan a further increase to 303 FTs, which corresponds to a growth of eight, roughly 8%, for the next year. And also, for the years beyond 2027, we plan to increase capacity by 7 to 9% per year.

Giulio Vitarelli: For 2027, we plan a further increase to 303 FTEs, which corresponds to a growth of roughly 8% for the next year. Also for the years beyond 2027, we plan to increase capacity by 7% to 9% per year. This capacity growth enables us, not only today but also in future, to meet the sustained demand for our consulting services. It is important to emphasize that this is consulting capacity to serve new clients and therefore new platform potential. Wealth managers, that means the capacity that serves existing platform clients, are not included in this number. Consulting revenues in the middle of the page continued to increase and reached CHF 22.6 million in the H1 2026. This is a concrete indication that demand for our advisory offering remains strong, and we assume that the growth of demand will go on also in 2027 and the years beyond.

Speaker #2: This capacity growth enables us not only today but also in the future to meet the sustained demand for our consulting services. It is important to emphasize that this is consulting capacity that serves new clients and therefore represents new platform potential.

Speaker #2: Wealth managers—that means the capacity that serves existing platform clients—are not included in this number. Consulting revenues, in the middle of the page, continued to increase and reached CHF 22.6 million in the first half of 2026.

Speaker #2: This is a concrete indication that demand for our advisory offering remains strong, and we assume that the growth of demand will continue also in 2027 and the years beyond.

Speaker #2: Net new money came in at CHF 3.3 billion in the first half of 2026. Annualized net new money per consulting FTE stood at CHF 23.5 million, which is above the five-year average of CHF 22.4 million for the last five years.

Giulio Vitarelli: Net new money came in at CHF 3.3 billion in the H1 2026. Annualized net new money per consulting FTE stood at CHF 23.5 million, which is above the five-year average of CHF 22.4 million for the last five years. This shows that market sentiment is positive and that the productivity of the consulting capacity remains at the high level. On page 9, we discuss the details of the wealth management numbers. Assets under management increased by 19.8% year on year to CHF 67.7 billion. This increase was driven by both strong net new money and positive market performance. You can see the positive market performance in the second line in the PM mandates, where AUM grew by 25.2%. The PM mandates represented 67.2% of total assets under management at the end of June 2026.

Speaker #2: This shows that market sentiment is positive and that the productivity of the consulting capacity remains at a high level. On page nine, we discuss the details of the wealth management numbers.

Speaker #2: Assets under management increased by 19.8% year on year to CHF 67.7 billion. This increase was driven by both strong net new money and positive market performance.

Speaker #2: You can see the positive market performance in the second line in the PM and dates, where AUM grew by 25.2%. The PM and dates represented 67.2% of total assets under management at the end of June 2026.

Speaker #2: And the other assets under management stood at CHF 22.2 billion and grew by 9.9% in the first half of 2026. As mentioned, net new money increased by 9.7% year on year to CHF 3.3 billion for the first half of 2026.

Giulio Vitarelli: The other assets under management stood at CHF 22.2 billion and grew by 9.9% in the H1 2026. As mentioned, net new money increased by 9.7% year on year to CHF 3.3 billion for the H1 2026. Important for us are the two lines of wealth management clients, the number of wealth management clients, and the new clients we won in the H1. The total number increased by 15.1% year on year to 101,000 clients by the end of June 2026, and we onboarded therefore 5,165 net new wealth management clients in the H1. This is 3.2% more than in the same period of 2025. Going into the details of our platform clients, how they use our platforms, we can move to page 10.

Speaker #2: Important for us are the two lines of wealth management clients: the number of wealth management clients, and the new clients we won in the first half-year.

Speaker #2: The total number increased by 15.1% year on year to 101,000 clients by the end of June 2026. And we therefore onboarded 5,165 net new wealth management clients in the first half-year.

Speaker #2: Which is 3.2% more than in the same period of 2025. Going into the details of our platform clients and how they use our platforms, we can move to page 10.

Speaker #2: The number of wealth management clients, as we have seen before and is displayed on the left side, reached more than 101,000 households. At the same time, we are making progress on increasing platform usage per client, or per household to be correct.

Giulio Vitarelli: The number of wealth management clients, as we have seen before, is displayed on the left side, reached more than 101,000 households. At the same time, we are making progress on increasing platform usage per client or per household, to be correct. The share of clients using only one platform continued to decrease to 44.4%, while the share of clients using three or more platforms increased to 29.1%. As you know, our target is a share of 33% of clients using at least three platforms. This development is important because clients who use more platforms are closer to VZ, have a broader relationship with us, and generate more recurring revenues.

Speaker #2: The share of clients using only one platform continued to decrease, to 44.4%, while the share of clients using three or more platforms increased to 29.1%.

Speaker #2: And as you know, our target is a share of 33% of clients using at least three platforms. This development is important because clients who use more platforms are closer to VZ, have a broader relationship with us, and generate more recurring revenue.

Speaker #2: And continuing to add more than 5,000 net new wealth management clients in a half-year period, while also increasing platform usage, can be considered a strong performance because the new clients normally start only with the usage of one platform.

Giulio Vitarelli: Continuing to add more than 5,000 net new wealth management clients in a half-year period, while also increasing platform usage, can be considered a strong performance because the new clients normally start only with the usage of one platform. A very important measurement for us is client satisfaction, which is shown on page 11. We measure the satisfaction with the Net Promoter Score methodology. In the H1 2026, the score was 80.4 for consulting clients and 85.6 for wealth management clients. These are very high numbers. We can say these are outstanding, because you know an NPS score over 50 is considered as excellent. It is very important for us that even with a fast-growing client base, we continue to maintain an extremely high level of service quality. On page 12, we see our branch office network across Switzerland, Germany, and the United Kingdom.

Speaker #2: A very important measurement for us is client satisfaction, which is shown on page 11. We measure satisfaction with the Net Promoter Score methodology.

Speaker #2: In the first half of 2026, the score was 80.4 for consulting clients and 85.6 for wealth management clients. These are very high numbers. We can say these are outstanding, because you know, an MPS score over 50 is considered excellent.

Speaker #2: It is very important for us that, even with a fast-growing client base, we continue to maintain an extremely high level of service quality. On page 12, we see our branch office network across Switzerland, Germany, and the United Kingdom.

Speaker #2: In Switzerland, we currently run 43 branch offices, and we plan to open new branch offices in Bülach and Biel as part of our continued expansion.

Giulio Vitarelli: In Switzerland, we currently run 43 branch offices. We plan to open new branch offices in Bülach and in Biel as part of our continued expansion. Biel and Bülach will be open over the next, let's say, six to nine months. In Germany, we currently have six branch offices. We are exploring the possibility of opening a branch office in Hamburg in the next years. In England, there are five offices. The expansion is driven by organic growth, but also by our acquisition strategy. The physical presence remains an important part of our business model. It supports client proximity, increases brand visibility, and helps us to capture demand in the relevant regions. At the same time, the VZ Financial Portal is the digital interface to our clients. The combination of physical presence and digital access is a key competitive advantage.

Speaker #2: Biel and Bühlach will be open over the next, let's say, six to nine months. In Germany, we currently have six branch offices, and we are exploring the possibility of opening a branch office in Hamburg in the next few years.

Speaker #2: And in England, there are five offices, and the expansion is driven by organic growth but also by our acquisition strategy. The physical presence remains an important part of our business model.

Speaker #2: It supports client proximity, increases brand visibility, and helps us capture demand in the relevant regions. At the same time, the financial portal is the digital interface to our clients, and the combination of physical presence and digital access is a key competitive advantage.

Speaker #2: So we will go on expanding our physical presence and we will go on expanding our investing in our digital interface. So now for the next agenda item, I have the pleasure to pass you over to our chief financial officer, Raphael Pfaffen, who will go through the details of our financials.

Giulio Vitarelli: We will go on expanding our physical presence. We will go on expanding or investing in our digital interface. Now for the next agenda item, I have the pleasure to pass you over to our Chief Financial Officer, Rafael Pfaffen, who will go through the details of our financials. Rafael, please.

Speaker #2: Raphael, please.

Speaker #1: Good morning also from my side. I will start the presentation on page 14. Here, you can see the development of revenues, expenses, and net profit over the last two and a half years.

Rafael Pfaffen: Good morning also from my side. I start the presentation on page 14. Here you can see the development of the revenues, expenses, and the net profit over the last two and a half years. Giulio has already given you quite a lot of information about the individual revenue lines. I, therefore, start in the middle of the page with the total revenues. As we have already seen, they increased by 13.9% from roughly CHF 278 million to CHF 316.5 million. Personnel expenses grew by 10.4% to CHF 115 million. The other operating expenses grew by 12.2% to roughly CHF 35 million. I will elaborate a little bit later on on those two expense lines. The depreciation and amortization increased by 6.5% to CHF 13.3 million. As a result, the total expenses grew by 10.4% to CHF 163.3 million.

Speaker #1: Giulio has already given you quite a lot of information about the individual revenue lines. I therefore start in the middle of the page with the total revenues. As we have already seen, they increase by 13.9%, from roughly 288 million to 306.5 million Swiss francs.

Speaker #1: Personal expenses grew by 10.4% to CHF 115 million, and the other operating expenses grew by 12.2% to roughly CHF 35 million. I will elaborate a little bit later on those two expense lines.

Speaker #1: The depreciation and amortization increased by 6.5% to 13.3 million and as a result the total expenses grew by 10.4% to 163.3 million. As the expenses grew a little bit, the slower than the total revenues, the EBIT increased over proportionately by 17.8% and increased from 130 million in the first half year of 2025 to 153.2 million in the first half year 2026.

Rafael Pfaffen: As the expenses grew a little bit slower than the total revenues, the EBIT increased over proportionately by 17.8% and increased from CHF 130 million in the H1 2025 to CHF 153.2 million in the H1 2026. The net profit grew in line with the EBIT. Net profit increased by 17.7% to CHF 131.9 million. The personal expenses are shown on the next page. They increased, as we have seen, by 10.4% to roughly CHF 115 million. The personal expense ratio was at 36.4% and is below our long-term maximum expense ratio of 39%. As Giulio has already mentioned, all our targets are meant that we are below the maximum target or above the minimum target in 9 out of 10 years.

Speaker #1: The net profit grew in line with the EBIT. Net profit increased by 17.7% to 131.9 million Swiss francs. The personnel expenses are shown on the next page.

Speaker #1: They increased, as we have seen, by 10.4% to roughly 115 million. The personnel expense ratio was at 36.4%, and this is below our long-term maximum expense ratio of 39%. As Giulio has already mentioned, all our targets are met: we are below the maximal target or above the minimal target in nine out of ten years.

Rafael Pfaffen: The FTE base grew in the H1 by 77 FTEs to a total of 1,749 FTEs, which means that we had in the H1 of 2026 or in June of 2026, more than 2,030 people employed within the VZ Group. On page 16, you see the other operating expenses. They increased to CHF 34.9 million. That is an increase of 12.2%. As we have also seen in 2025, there are certain seasonality in this figure, so we think that the other operating expenses in the H2 of 2026 will most likely not increase a lot. Maybe they are stable at CHF 35 million roughly, or maybe they could even be a little bit lower. We do not have the insights yet, but this growth must be compared from the H1 2025 to the H1 of 2026.

Speaker #1: The FTE base grew in the first half-year by 17.7 FTEs to a total of 1,749 FTEs, which means that we had in the first half-year of 2026, or in June 2026, more than 2,030 people employed within the VSET group.

Speaker #1: Then, on page 16, you see the other operating expenses. They increased to 34.9 million—that's an increase of 12.2%. As we have also seen in 2025, there is certain seasonality in this figure.

Speaker #1: So we think that the other operating expenses in the second half year of 2026 will most likely not increase a lot maybe they are stable at the 35 million roughly or maybe they could even be a little bit lower we don't have the insights yet but these growth must be compared from the first half year 2025 to 20 to the first half year of 2026 and you should not look at the development from the second half year of 2025 to the first half year of 2026.

Rafael Pfaffen: You should not look at the development from the H2 of 2025 to the H1 of 2026. The premises expenses grew by 16%. Here you can see that we increased our branch office network, that we increased our office spaces and client meeting spaces. The marketing expenses grew by 4% and the general administrative expenses increased by 14.7%. Here we had the accumulation of some small effects and that resulted in a little bit higher increase in this figure compared to other years. The long-term operating expense ratio is expected to remain between 11% and 13% going forward. The EBIT is shown on the next page. It increased by 17.8% as mentioned, and EBIT margin therefore came in at 48.4%. Our long-term target here is, as you know, 44%. I already move on to the balance sheet on page 18.

Speaker #1: The premise expenses grew by 16%. Here you can see that we increased our branch office network, that we increased our office spaces and client meeting spaces. The marketing expenses grew by 4%, and the general administrative expenses increased by 14.7%.

Speaker #1: Here, we had the accumulation of some small effects, and that resulted in a slightly higher increase in this figure compared to other years.

Speaker #1: The long-term operating expense ratio is expected to remain between 11% and 13% going forward. The EBIT is shown on the next page. It increased by 17.8%, as mentioned, and the EBIT margin therefore came in at 48.4%.

Speaker #1: Our long-term target here is, as you know, 44%. And then I already move on to the balance sheet. On page 18, I explain to you the differences, as always, on a year-to-date basis.

Rafael Pfaffen: I explain you the differences as always on a year-to-date basis. So I compare June 2026 figures with December 2025 figures. I start in the middle of the page with the total assets, respectively, the balance sheet total. The total assets increased by roughly CHF 500 million from CHF 1.27 billion to CHF 8.76 billion. On the liability side, the biggest contributor were the customer deposits. They increased by CHF 250 million to roughly CHF 6.4 billion. The money then was invested on the active side, primarily, in Swiss prime residential mortgages. That is the third line. The mortgage book increased by roughly CHF 350 million and stood at roughly CHF 5.2 billion in June 2026. At the bottom, you see the development of the total equity. The total equity increased only by CHF 24 million. That is a usual effect in the H1.

Speaker #1: So, I compare June 2026 figures with 2025. I start in the middle of the page with the total assets, respectively the balance sheet total. The total assets increase by roughly 500 million, from 1.27 billion to 1.76 billion.

Speaker #1: On the liability side, the biggest contributor was the customer deposits. They increased by 250 million to roughly 6.4 billion Swiss francs. The money was then invested on the asset side, primarily in Swiss prime residential mortgages.

Speaker #1: That's the third line. The mortgage book increased by roughly 350 million and stood at approximately 5.2 billion in June 2026. At the bottom, you see the development of the total equity.

Speaker #1: The total equity increased only by 24 million. That's the usual effect in the first half of the year. The fact is that we pay out dividends to the shareholders in the first half of the year.

Rafael Pfaffen: The fact is that we pay out the dividends to the shareholders in the H1, and this decreases then the equity in the first place. This decrease in the equity is then compensated by the net profit of the H1, and thus both figures are more or less at a similar level as the total equity remains more or less unchanged. The future balance sheet growth will be driven by new client inflow. As you know, we have an overall balance sheet that is very safe, and our average remaining interest period is 1.7 years, which means that we can quickly adjust to new interest levels. Loan-to-value ratio on our mortgage book is below 50%. We also have a very liquid balance sheet.

Speaker #1: And this decreases the equity in the first place. This decrease in the equity is then compensated by the net profit of the first half year, and as both figures are more or less at a similar level, the total equity remains more or less unchanged.

Speaker #1: The future balance sheet growth will be driven by new client inflow. And, as you know, we have an overall balance sheet that is very safe, and our average remaining interest period is 1.7 years, which means that we can quickly adjust to new interest levels.

Speaker #1: And loan to value ratio on our mortgage book is below 50%. We also have a very liquid balance sheet. If we look again at the table the first line the cash and cash equivalents the 1.7 billion Swiss francs is our deposits that we have with the Swiss National Bank and the Deutsche Bundesbank.

Rafael Pfaffen: If we look again at the table, the first line, the cash and cash equivalent, the CHF 1.7 billion is our deposits that we have with the Swiss National Bank and the Deutsche Bundesbank. In the line bonds and other financial assets, roughly half of this position is a bond portfolio, a high liquid asset bond portfolio that we could easily convert into cash, either by selling those bonds or convert them into cash via the repo businesses. I move on to the next page, and we start on the right-hand side. Here you can also see that we have a very safe balance sheet. The equity ratio was at 13.8% and the CET1 capital ratio was at 28.4%, which are both very good figures. It's a little bit a coincidence that the 28.4% remained exactly at the same level in the last one and a half years.

Speaker #1: And in the line 'bonds and other financial assets,' roughly half of this position is a bond portfolio—a highly liquid asset bond portfolio that you could easily convert into cash, either by selling those bonds or converting them into cash via the repo business.

Speaker #1: I move on to the next page. We start on the right-hand side. Here you can also see that we have a very safe balance sheet.

Speaker #1: The equity ratio was at 13.8%, and the common capital ratio was at 28.4%, which are both very good figures. It's a bit of a coincidence that the 28.4% has remained exactly at the same level over the last one and a half years.

Speaker #1: The second decimal place is different, so it's not that the figure is exactly the same. But here you can see that our risk exposure is very stable and that we don't increase the risk profile when our balance sheet is growing.

Rafael Pfaffen: The second decimal place is different, so it's not that the figure is exactly the same, but here you can see that our risk exposure is very stable and that we don't increase the risk profile when our balance sheet is growing. As you know, and as we have explained also last year, FINMA has classified VZ Depotbank AG and VZ Group as a Category 3 institute or institutions, before we were a Category 3 institute. This means that we have a little bit closer contact with FINMA and that we are a little bit closely monitored by FINMA. But overall, that's positive for us. The interaction with FINMA is interesting and good for us.

Speaker #1: As you know, and as we explained also last year, the FINO has classified the Visa depository bank and Visa group as category three institutions.

Speaker #1: Before, we were a category three institute. This means that we have a little bit closer contact with FINO and that we are a little bit more closely monitored by FINO, but overall that's positive for us.

Speaker #1: The interaction with the FINO is interesting and good for us. And Moody's rating remained at Aa3 stable. That's, in the S&P terminology, a double A minus, which is a very good figure for a relatively small bank such as the Visa depository bank.

Rafael Pfaffen: The Moody's rating remained at the Aa3 stable, that's in the S&P terminology, a double A minus, which is a very good figure for a relatively small bank such as the VZ Depotbank. On the left-hand side, you see the dividends that we have paid out in H1 2026. It's the CHF 116.2 million. This corresponds to a payout ratio of 50%. As you know, we also plan to have a payout ratio of 50% in the coming years, always provided that the general assembly then approves this payout ratio. At the bottom on the left-hand side, you see the number of treasury shares that we have for our management benefit program. Here we are stable at around 600,000 shares. With this information, I hand back to Giulio, who will elaborate a little bit on the upcoming quarter.

Speaker #1: On the left-hand side, you see the dividend that we have paid out in the first half-year of 2026. It's the 116.2 million Swiss francs.

Speaker #1: This corresponds to a payout ratio of 50%. And, as you know, we also plan to have a payout ratio of 50% in the coming years.

Speaker #1: Always provided that the General Assembly then approves this payout ratio. At the bottom, on the left-hand side, you see the number of treasury shares that we have for our management benefit program.

Speaker #1: Here we are stable at around 600,000 shares. With this information, I hand back to Julio, who will elaborate a little bit on the upcoming quarter.

Speaker #2: Thank you, Rafael, for your comments. Let us now go to the outlook section on page 21. What I can state is that our long-term growth story, which we have seen over the last 33 years, remains unchanged.

Giulio Vitarelli: Thank you, Rafael, for your comments, and let us now go to the outlook section on page 21. What I can state is that our long-term growth story that we have seen over the last 33 years remains unchanged. Our track record demonstrates that strong consulting demand leads to more platform clients and increased platform usage that supports recurring revenues over time. Said that, we will continue and focus on increasing new client inflow. We will focus on our consulting capacity, increasing consulting capacity. We want to increase or be stable in client conversion and platform usage. These elements are the core of our business model and form the basis for future growth. On the digitalization side, we will continue to develop the VZ Financial Portal. The next steps include conversational banking and single sign-on to all our digital platforms.

Speaker #2: Our track record demonstrates that strong consulting demand leads to more platform clients and increased platform usage, which then supports recurring revenues over time. Having said that, we will continue to focus on increasing new client inflow.

Speaker #2: We will focus on our consulting capacity, increasing capacity, consulting capacity. We want to increase or be stable in client conversion and platform usage. These elements are the core of our business model and form the basis for future growth.

Speaker #2: On the digitalization side, we will continue to develop the Visa Financial Portal. The next steps include conversational banking and single sign-on to all our digital platforms. In addition, we are building an AI-based retirement consulting agent based on our expertise.

Giulio Vitarelli: In addition, we are building an AI-based retirement consulting agent based on our expertise. By combining our physical presence with strong digital expertise, we expect to make it even easier for prospective clients to access our services. In Germany, we will continue scaling consulting capacity to support the organic growth that we have there. The continued expansion of our consultant base provides the foundation for opening additional branches, which we are currently evaluating. We are thinking about opening a new branch office in Hamburg, for example. In the UK, we are building up consulting capacity, increasing marketing activities, and expanding IFA acquisitions. Based on our current pipeline, we expect to be able to complete 3 to 4 acquisitions this year. Over the coming years, we intend to further increase the pace of acquisitions to maybe 4 to 8 acquisitions per year.

Speaker #2: By combining our physical presence with strong digital expertise, we expect to make it even easier for prospective clients to access our services. In Germany, we will continue scaling consulting capacity to support the organic growth that we have there.

Speaker #2: And the continued expansion of our consultant base provides the foundation for opening additional branches, which we are currently evaluating. We are thinking about opening a new branch office in Hamburg, for example.

Speaker #2: In the UK, we are building up consulting capacity, increasing marketing activities, and expanding IFA acquisitions. Based on our current pipeline, we expect to be able to complete three to four acquisitions this year.

Speaker #2: And over the coming years, we intend to further increase the pace of acquisitions to maybe four to eight acquisitions per year. Let me also say a few words on the financial outlook on the right side.

Giulio Vitarelli: Let me also say a few words on the financial outlook, on the right side. Of course, provided stable financial markets, we expect the similar overall growth rate in H2 2026 as in H1 2026. So we expect the growth rate to be at a similar level. We expect net interest margin in 2026 to be a comparable level as in H1 2026. So we were at 53 basis points in the first half year, and we expect to be at a similar level in the second half year of 2026. Of course, this margin is subject to the SNB policy and our expectation bases on stable SNB policy rate and exemption threshold. For the years 2027 and beyond, we expect top line and bottom line growth rates to approach a similar level as the average of the last 10 years.

Speaker #2: Of course, with stable financial markets, we expect a similar overall growth rate in the second half of 2026 as in the first half of 2026.

Speaker #2: So we expect the growth rate to be at a similar level. We expect the net interest margin in 2026 to be at a comparable level as in the first half of 2026.

Speaker #2: So we were at 53 basis points in the first half of the year, and we expect to be at a similar level in the second half of 2026.

Speaker #2: Of course, this margin is subject to the S&B policy and our expectation based on a stable S&B policy rate and exception threshold. For the years 2027 and beyond, we expect top-line and bottom-line growth rates to approach a similar level as the average of the last 10 years. That means that we expect to continue to grow at around 10% per annum.

Giulio Vitarelli: That means that we expect to continue to grow at around 10% per annum. It is very important to us to maintain the balance sheet structure and the low-risk profile in line with past years. We continue to target a payout ratio, as Rafael mentioned, of about 50% of net profits. Therefore, dividends are expected to grow alongside net profits. So here our presentation comes to an end, and now Rafael and I are ready for your questions. For this, I will pass you over to the operator.

Speaker #2: It is very important to us to maintain the balance sheet structure and the low risk profile in line with past years. And we continue to target a payout ratio, as Rafael mentioned, of about 50% of net profit.

Speaker #2: Therefore, dividends are expected to grow alongside net profit. So, here our presentation comes to an end, and now Rafael and I are ready for your questions.

Speaker #2: For this, I will pass you over to the operator.

Speaker #1: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question from the webinar may click the Q&A button on the left side of the screen and then click the "raise your hand" button.

Operator: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question from the webinar may click the Q&A button on the left side of the screen and then click the Raise Your Hand button. For written questions, please click the Q&A button on the Text button and type your question. If you are connected via phone, please press star followed by 1 on your telephone keypad. You will hear a tone to confirm that you've entered the queue. If you wish to remove yourself from the question queue, you may press the Lower Your Hand button from the webinar or press star and 2 on the telephone. Anyone who has a question may queue up now. Our first question comes from Daniel Regli from Zürcher Kantonalbank. Please go ahead, sir.

Speaker #1: For written questions, please click the Q&A button on the text button and type your question. If you are connected via phone, please press star, followed by one, on your telephone keypad.

Speaker #1: You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press the 'Lower Your Hand' button from the webinar, or press star and two on the telephone.

Speaker #1: Anyone who has a question may queue up now. Our first question comes from Daniel Regli from Zürcher Kantonalbank. Please go ahead, sir.

Speaker #3: Yes, good morning, and thank you for taking my questions. My first question is on the outlook for H2. You said a similar growth rate is expected in H2.

Daniel Regli: Yes, good morning, and thank you for taking my questions. My first question is on the outlook for H2. You said similar growth rate expected in H2. Can you maybe specify whether you refer to top line growth, net new money, net profit, or everything together? Secondly, a quick question on the other operating expenses and in particular, the marketing expenses. I think you, Rafael, referred to look at or compare H1 with H1, and as I see, it is particularly the marketing expenses which show a certain seasonality. Can you confirm that also we should continue to see this seasonality going forward? Maybe also, if you could elaborate a bit where exactly you spend your money and how you decide on when to spend the money. My third question, if I may, would be on this AI-based retirement consulting agent.

Speaker #3: Could you maybe specify whether you are referring to topline growth, net new money, net profit, or everything together? Then, secondly, a quick question on other operating expenses, and particularly on marketing expenses.

Speaker #3: I think you Rafael referred to kind of to look at or compare H1 with H1 and I as I see it is particularly the marketing expenses which show a certain seasonality can you kind of confirm that also we should continue to see this seasonality going forward and maybe also maybe if you could elaborate a bit where exactly you kind of spent your money and how you decide on when to spend the money and then my third question if I may would be on this AI based retirement consulting agent can you maybe talk a little bit about the timeline and how if at all you plan to monetize this.

Daniel Regli: Can you maybe talk a little bit about the timeline and how, if at all, you plan to monetize this? Thank you.

Speaker #3: Thank you.

Speaker #2: Thank you, Daniel, for your questions. Maybe I will briefly answer the first question, then I will pass you over to Rafael for the second question, and I will come back for the third one.

Giulio Vitarelli: Thank you, Daniel, for your questions. Maybe I shortly answer the first question, and then I pass you over to Rafael for the second question, and I will come back for the third one. To your first question, the expectation for second half 2026 refers to top line and bottom line growth, and there we expect the same rates as we have seen in this first half year result. So we refer clearly to top line and bottom line growth.

Speaker #2: To your first question, the expectation for the second half of 2026 refers to top line and bottom line growth, and there we expect the same rates as we have seen in this first half year result.

Speaker #2: So, we refer clearly to top-line and bottom-line growth.

Speaker #3: Okay very clear. Thank you.

Daniel Regli: Okay. Very clear. Thank you.

Speaker #4: And then I go on to the second question. The other operating expenses yes you're right one of the biggest seasonality in this figure is the marketing and one of our biggest marketing expenses is the Vset news that you send out to the the our clients or potential clients and normally we send out five Vset news per year and three of them coming in the first half year and two in the second half year and that explains the seasonality in the marketing cost that you can see her here.

Giulio Vitarelli: Then I go on to the second question, the other operating expenses. Yes, you are right. One of the biggest seasonality in this figure is the marketing. One of our biggest marketing expenses is the vz news that we send out to our clients or potential clients. Normally we send out five vz news per year, and three of them coming in the first half year and two in the second half year. That explains the seasonality in the marketing costs that you can see here.

Speaker #3: Okay. Thank you.

Daniel Regli: Okay. Thank you.

Speaker #2: Good. Then the third question is about AI. The AI agent that I mentioned—we are building it, or we have started to build it.

Giulio Vitarelli: Good. Then the third question is about AI agent that I mentioned that we are building, or we started to build it. Talking about AI, maybe I spend a few words on the environment and why it is important to us or why that is always a question. For that, it is important to understand that retirement planning in Switzerland is highly complex. Retirement planning for people means that it requires many decisions, each of which can have a significant impact on the individual standard of living over the next 20 or 30 years. Moreover, these questions cannot be answered in a standardized way. So they must be addressed on an individual basis. If these questions or these decisions are made incorrectly, the consequences for a person's long-term financial wellbeing can be substantial and lasting.

Speaker #2: Talking about AI maybe I I spend a few words on the environment and why it is important to us or why that is always that is always a a question.

Speaker #2: And for that, it's important to understand that retirement planning in Switzerland is highly complex. Retirement planning for people means that it requires many decisions, each of which can have a significant impact on the individual's standard of living over the next 20 or 30 years.

Speaker #2: Moreover, these questions cannot be answered in a standardized way, so they must be addressed on an individual basis. And if these questions or these decisions are made incorrectly, the consequences for a person's long-term financial well-being can be substantial and lasting.

Speaker #2: And, in addition, providing the right recommendations requires access to a considerable amount of personal information, including tax returns, pension statements, bank account records, and other sensitive financial data.

Giulio Vitarelli: In addition, providing the right recommendations requires access to a considerable amount of personal information, including tax returns, pension statements, bank account records, and other sensitive financial data. Only with this information, advice can be tailored to an individual's specific circumstances. It does not matter if advice is brought physically or digitally via AI. Today, all what I said means that or would mean disclosing a large amount of highly personal information to general proposed AI models, like ChatGPT, Gemini, or whoever. I am very skeptical. Personally, I am very skeptical that many people will be willing to do that. For this reason, I strongly believe that personal interaction and human expertise will remain highly relevant. This is also why we decided to build our own AI agent specifically for retirement planning. We started to build it four weeks ago.

Speaker #2: And only with this information can advice be tailored to an individual's specific circumstances. It doesn't matter if advice is brought physically or digitally via AI.

Speaker #2: Today, all of what I said means that, or would mean, disclosing a large amount of highly personal information to general proposed AI models—like ChatGPT, Gemini, or whoever—and I'm very skeptical. Personally, I'm very skeptical that many people will be willing to do that.

Speaker #2: For this reason, I strongly believe that personal interaction and human expertise will remain highly relevant. This is also why we decided to build our own AI agent specifically for retirement planning.

Speaker #2: So, we started building it four weeks ago, and to your question, we plan to roll it out internally over the next six to nine months. If it works internally, then we can roll it out for our clients as well.

Giulio Vitarelli: And to your question, we plan to roll out it internally over the next six to nine months. If it works internally, then we can roll out it also for our clients. This model will allow clients to benefit from AI support guidance in a secure environment, that is very important. What is also important, it will be backed by trusted expertise and with always the option of involving a human expert at any time. That means, I am convinced that only a small part of clients using such an agent will use it till the end. I am convinced that a lot of them will search physical interaction or look for physical interaction with an expert. That means that the monetization of it will be the same as we see today with the physical way of advising clients. Is that understandable?

Speaker #2: This model will allow clients to benefit from AI support guidance in a secure environment—that's very important. And what is also important is that it will be backed by trusted expertise, with always the option of involving a human expert at any time.

Speaker #2: So that means, and I'm convinced, that only a small part of clients using such an agent will use it till the end. I'm convinced that a lot of them will search for physical interaction or look for physical interaction with an expert. And that means that the monetization of it will be the same as we see today with the physical way of advising clients.

Speaker #2: Is that understandable?

Speaker #3: Yes, absolutely. Makes absolute sense. Thank you so much.

Daniel Regli: Yes. Makes absolute sense. Absolute sense. Thank you so much.

Speaker #1: As a reminder, for questions from the webinar, click the Q&A button on the left side of your screen and then click the 'Raise Your Hand' button.

Operator: As a reminder, for questions from the webinar, click the Q&A button on the left side of your screen and click Raise Your Hand button. For written question, click the Q&A button and then Text button and type your question. If you are connected via phone, please press star followed by 1. The next question comes from Gerhard Schwarz from Baader Helvea. Please go ahead.

Speaker #1: For written questions, click the Q&A button, then the 'Text' button, and type your question. If you are connected via phone, please press a star followed by one.

Speaker #1: The next question comes from Gerhard Schwarz from Baader Helvea. Please go ahead.

Speaker #4: Yes. Thank you for taking my question, and congratulations on these excellent results today. I have a question on the interest margin. It has increased slightly sequentially from 51 basis points to 53 basis points. Can you explain, please, if this is just kind of a blip, or a random movement, or if we can expect a lasting level around 53, and not 51 or below 50? And the second question would be: currently markets price in an S&P rate hike by the middle of next year. What would this mean for your interest margin going forward into the second half of next year? Would this rise to 60 basis points, or is it too early to talk about that? Thank you.

Gerhard Schwarz: Yes. Thank you for taking my questions, and congratulations to those excellent results today. I got a question on the net interest margin. It has increased slightly sequentially from 51 bps to 53 bps.

Gerhard Schwarz: Can you explain, please, if this is just a blip or a random movement, or if we can expect a lasting level around 53 and not 51 or below 50? The second question would be, currently market's price in SNB rate hike by the middle of next year. What would this mean for your interest margin going forward into the H2 of next year? Would this rise to 60 basis points, or is it too early to talk about that? Thank you. The interest margin increased a little bit, as you mentioned. Here, the biggest impact comes from the mortgage book. Over in Switzerland, the price for mortgages increased, and we were also able to increase our margin a little bit, and this then resulted in this 53 basis points margin that we have seen. If this trend continues, it's difficult to foresee.

Speaker #2: Yeah the interest margin increased a little bit as you mentioned and here the the biggest impact comes from the mortgage book over in Switzerland the the price for mortgages increased and we were also able to increase our margin a little bit and this then resulted in the this 53% basis points margin that we have seen if this trend continues is difficult to foresee I would assume that the margin remains more or less stable at the level that we have seen in the first half year.

Giulio Vitarelli: The interest margin increased a little bit, as you mentioned. Here, the biggest impact comes from the mortgage book. Over in Switzerland, the price for mortgages increased, and we were also able to increase our margin a little bit, and this then resulted in this 53 basis points margin that we have seen. If this trend continues, it's difficult to foresee. I would assume that the margin remains more or less stable at the level that we have seen in the H1. Yes, if the SNB rate would go up, our net profit margin would also go up. But here it's difficult to give an indication. It really depends when in the cycle or in the half year the SNB would do it. But as I have mentioned, our balance sheet reacts quite quickly to new interest level because we have quite a big SARON book.

Rafael Pfaffen: I would assume that the margin remains more or less stable at the level that we have seen in the H1. Yes, if the SNB rate would go up, our net profit margin would also go up. But here it's difficult to give an indication. It really depends when in the cycle or in the half year the SNB would do it. But as I have mentioned, our balance sheet reacts quite quickly to new interest level because we have quite a big SARON book. Most of our mortgages are SARON based, and therefore, the interests increase in this mortgage book quite quickly if the SNB goes up. But to say really the effect on the net interest margin is difficult because this also depends on how other banks would increase the interest they give to the clients on the liability side. Okay. Thank you.

Speaker #2: And yes if the S&P rate would go up our net profit margin would also go up but here it's difficult to give an indication it really depends when in the cycle or in the half year the S&P would do it but as I have mentioned our balance sheet reacts quite quickly to new interest level because we have quite a big Soron book most of our mortgages are Soron based and therefore the the the interests increase in this mortgage book quite quickly if the S&P goes up.

Giulio Vitarelli: Most of our mortgages are SARON based, and therefore, the interests increase in this mortgage book quite quickly if the SNB goes up. But to say really the effect on the net interest margin is difficult because this also depends on how other banks would increase the interest they give to the clients on the liability side. Okay. Thank you.

Speaker #2: But to say really, the effect on the net interest margin is difficult, because this also depends on how other banks would increase the interest they give to clients on the liability side.

Speaker #4: Okay thank you.

Speaker #1: The next question comes from Andreas Venditi from Vontobel. Please go ahead.

Operator: The next question comes from Andreas Venditti from Vontobel. Please go ahead.

Speaker #4: Thank you very much. So, on management fees, we've seen a nice boost on those based on AUM; however, also the other management fees that are not directly dependent on AUM rose very strongly, with 15%—I think one of the highest growth rates of the last five years. Maybe you can add a bit more color on this strong growth?

Andreas Venditti: Thank you very much. On management fees, we've seen a nice boost on those based on AUM. However, also the other management fees that are not directly dependent on AUM grows very strongly with 15%, I think one of the highest growth rates of the last 5 years. Maybe you can add a few color on this strong growth. Then on the insurance result, I know it's a minor number, but still it's now the second half year with somewhat lower year-on-year growth rates than in the past. Maybe you can also explain a bit this development. Finally, on IFRS 18, will there anything change in your disclosure? If yes, can you maybe provide a few hints? Thank you.

Speaker #4: Then, on the insurance result, I know it's a minor number, but still, it's now the second half-year with somewhat lower year-on-year growth rates than in the past. Maybe you can also explain a bit this development.

Speaker #4: And finally, on IFRS 18, will there be anything changing in your disclosure? If yes, can you maybe provide a few hints? Thank you.

Speaker #2: Thank you for your questions. I will take the first question. On the other management fees and yes the other management fees depends on the growth of number of clients mainly and so as we were able to onboard more clients and I'm talking about mainly about pensions schemes for our business clients we were able to onboard more clients on on the pension schemes we had a bigger move there on on this line.

Rafael Pfaffen: Thank you for your questions. I will take the first question on the other management fees. Yes, the other management fees depends on the growth of number of clients mainly. As we were able to onboard more clients, I am talking mainly about pension schemes for our business clients. We were able to onboard more clients on the pension schemes. We had a bigger move there on this line. That was the reason why. Maybe second and third question, Rafael. Yes, for the insurance results here, it is always a little bit difficult to look at the H1 because the actuaries are always quite conservative in the H1. Nevertheless, you are right. The increase was only at 7.4% compared to the last H1.

Giulio Vitarelli: Thank you for your questions. I will take the first question on the other management fees. Yes, the other management fees depends on the growth of number of clients mainly. As we were able to onboard more clients, I am talking mainly about pension schemes for our business clients. We were able to onboard more clients on the pension schemes. We had a bigger move there on this line. That was the reason why. Maybe second and third question, Rafael.

Speaker #2: That was was that was the reason why. And maybe second and third question Raphael. Yes for the insurance result here it's always a little bit difficult to look at the first half year because the actual risk are always quite conservative in the first half year nevertheless you're right I mean the the increase was only 7.4% compared to the last half year but I think in the insurance result it's important to know that it that we grow roughly by 12 to 15% per year and as we show here a net figure it's always fluctuating a little bit but overall as I said we grow by 12 to 15% and our average claims ratio in both insurance companies is around 65%.

Rafael Pfaffen: Yes, for the insurance results here, it is always a little bit difficult to look at the H1 because the actuaries are always quite conservative in the H1. Nevertheless, you are right. The increase was only at 7.4% compared to the last H1. But I think in the insurance result, it is important to know that we grow roughly by 12% to 15% per year. As he showed you a net figure, it is always fluctuating a little bit. But overall, as I said, we grow by 12% to 15%, and our average claims ratio in both insurance companies is around 65%. So in the mid and long term, that is a quite attractive business. The fluctuation on a half-year basis is a little bit difficult to interpret.

Rafael Pfaffen: But I think in the insurance result, it is important to know that we grow roughly by 12% to 15% per year. As he showed you a net figure, it is always fluctuating a little bit. But overall, as I said, we grow by 12% to 15%, and our average claims ratio in both insurance companies is around 65%. So in the mid and long term, that is a quite attractive business. The fluctuation on a half-year basis is a little bit difficult to interpret. Most important is also to know that mostly at the end of the year, we can release some reserves, some IBNR. So most of the time, the H2 comes then in higher than the H1. If that is okay, I move on to the IFRS 18 question. Yes, we will be affected a little bit.

Speaker #2: So in in the mid and long term that's a quite attractive business and the fluctuation on a half year basis is a little bit difficult to interpret and most important is also to know that mostly at the end of the year we can release some reserves some IBNRs so most of the time the second half year comes then in higher than the first half year.

Rafael Pfaffen: Most important is also to know that mostly at the end of the year, we can release some reserves, some IBNR. So most of the time, the H2 comes then in higher than the H1. If that is okay, I move on to the IFRS 18 question. Yes, we will be affected a little bit. We have to restructure the P&L a little bit, and there are new categories. As you know, there will be one part for the operating business than for investing and financing. Otherwise, there will be no big effect for us because of the bank. We already show the net interest income in the top line, and there will be only a few movements within the financing and investing part. So the top line will not be really affected and the net profit, not at all. Were these two answers clear?

Speaker #2: And if that's okay I move on to the the IFRS 18 question. Yes we will be affected a little bit we have to restructure the the the the P&L a little bit there are new categories as you know there will be one part for the operating business then for investing and financing but otherwise there will be no big effect for us because as a bank we already showed net interest income in the top line and there will be only a few yeah movements within the financing and investing part.

Rafael Pfaffen: We have to restructure the P&L a little bit, and there are new categories. As you know, there will be one part for the operating business than for investing and financing.

Giulio Vitarelli: Otherwise, there will be no big effect for us because of the bank. We already show the net interest income in the top line, and there will be only a few movements within the financing and investing part. So the top line will not be really affected and the net profit, not at all. Were these two answers clear?

Speaker #2: So the top line will not be really affected, and the net profit, not at all. Yes. Was this, these two points, clear?

Speaker #4: Sure. Thank you very much.

Andreas Venditti: Sure. Thank you very much.

Speaker #2: Okay. Thanks.

Giulio Vitarelli: Okay, thanks.

Speaker #1: We will now take a follow-up question from Daniel Rigley from Zurich Cantonal Bank. Please go ahead.

Operator: We take now a follow-up question from Daniel Regli from Zürcher Kantonalbank. Please go ahead.

Speaker #3: Yes, thanks for having me again. Just one question on your outlook slide. Obviously, on the left-hand side, you are talking about continuous work on increasing new client inflow, consulting capacity, and client conversion.

Daniel Regli: Yes. Thanks for having me again. Just one question on your outlook slide. Obviously, on the left-hand side, you are talking about continuous work on increasing new client inflow, consulting capacity, client conversion, and platform usage. I just wondered, you saw a very strong net new money number in H1 with CHF 23.5 million per financial consultant. This sounds like you still see some room for improvement. Could we see this number to go even higher? Is this a wrong interpretation of what I see on this slide?

Speaker #3: And platform usage, and obviously, I just wondered—you know, you saw a very strong net new money number in H1, with like CHF 23.5 million per financial consultant.

Speaker #3: But this sounds like you still see some room for improvement. So, could we see this number go even higher, or is that a wrong interpretation of what I see on this slide?

Speaker #2: I wouldn't say it's wrong, but I also wouldn't say that there is much room for improvement. It's also a little bit fluctuating, based on market sentiment of the client, that's the first point.

Giulio Vitarelli: I wouldn't say it's wrong, but I also wouldn't say that there is much room for improvement. It's also a little bit fluctuating on market sentiment of the client, first point. Let me go back. Why it's fluctuating because of market sentiment? Because market sentiment drives the decision of client to invest faster or not so fast, and also drives existing clients to invest more or not to invest more. That's very important by interpreting this figure. Of course, we try to increase the efficiency of our consulting capacity, but much more important is to develop the consulting capacity. The number of FTEs that can serve the growing demand for our services. Our focus is not growing that number. Of course, we try to do it, but our focus stays on growing the consulting capacity for the growing demand for our expertise.

Speaker #2: It's also fluctuating, and—why is it—let me go back—why is it fluctuating? Because of market sentiment. Because market sentiment drives the decision of clients to invest faster or not so fast.

Speaker #2: And also drives existing clients to invest more or not to invest more. That's very important to by interpreting this this this figure. Of course we try to to increase the efficiency of our of our of our consulting capacity.

Speaker #2: But much more important is to develop the consulting capacity—the number of FTEs that can serve the growing demand for our services. Our focus is now on growing that number.

Speaker #2: Of course, we try to do it, but our focus stays on growing the consulting capacity for the growing demand for our expertise.

Speaker #3: Okay. Thank you so much.

Daniel Regli: Okay. Thank you so much.

Speaker #1: We now take the written question from Michael Schultz from JMS. His question is: Is the referend rent and reform in Germany a business opportunity for you, or is it not relevant for VZ?

Operator: We take now the written question from Michael Schultz from JMS. His question is: Is the Rentenreform in Germany a business opportunity for you, or is it not relevant for VZ?

Speaker #2: Yes, the rent and reform in Germany, of course, it's an opportunity for VZ, but it's not an opportunity in terms of directly making business out of it.

Giulio Vitarelli: Yes, the Rentenreform in Germany, of course, it's an opportunity for VZ. But it's not an opportunity in terms of directly making business out of it. It's an opportunity because we can support our position providing expertise about the Rentenreform. The Rentenreform, and I assume that Mr. Schultz is talking about the Altersvorsorgedepot that will be introduced in Germany in 2027. It's comparable to the third pillar in Switzerland, but the amount that you can contribute in the Altersvorsorgedepot in Germany will be much smaller than in Switzerland. But we will be ready with an own solution in Germany in January 2027, when it will be possible to offer such a solution. So the Rentenreform is very important for us, because that makes the discussion about retirement much more important, and so we can positioning us VZ with our expertise.

Speaker #2: It's an opportunity because we can we can support our position providing expertise about the the rent and reform. The rent and reform and I assume that Mr. Schultz is talking about the Alters Vorsorge Depot that will be introduced in Germany in 2027.

Speaker #2: It's comparable to the to the third pillar in in Switzerland but but the amount that you can contribute in in the Alters Vorsorge Depot in Germany will be much smaller than in Switzerland.

Speaker #2: But we will be ready with a known solution in Germany in January 2027, when it will be possible to offer such a solution.

Speaker #2: So the rent and reform is very important for us. Because that makes the the the the the discussion about retirement makes it much more important and so we can positioning us VZ with with our expertise.

Speaker #1: For any further questions from the webinar, please click the Q&A button on the left side of the screen and click the 'Raise Your Hand' button. For written questions, click the Q&A button and then the 'Text' button, and type your question.

Operator: For any further questions from the webinar, please click the Q&A button on the left side of the screen and click raise your hand button. For written questions, click the Q&A button and then text button and type your question. If you are connected via phone, please press star followed by one. Gentlemen, so far there are no further questions. Back over to you for any closing remarks.

Speaker #1: If you are connected via phone, please press star followed by one. Gentlemen, so far there are no further questions. Back over to you for any closing remarks.

Speaker #2: Thank you, Sandra, and thank you all for joining this meeting and for your questions. I wish you a good weekend, and I assume that we will meet next month, or then in half a year when we will present our full-year results.

Giulio Vitarelli: Thank you, Sandra, and thank you all for joining this meeting, for your questions. I wish you a good weekend. I assume that we will meet in the next month or meet then in a half year when we will present our full-year results. Have a good day, and see you soon.

Speaker #2: Have a good day, and see you soon.

Speaker #1: Ladies and gentlemen, the conference is now over. Thank you for choosing CorusCall, and thank you for participating in the conference. You may now disconnect your lines.

Operator: Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

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Half Year 2026 VZ Holding AG Earnings Call

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