Half-year results of Bank Frick: Budgeted annual result of CHF 3.1 million already achieved
Bank Frick generated a net profit of CHF 3.1 million in the first half-year. All strategic business segments contributed to this long-term result. For 2021, the Bank therefore expects an annual profit in the order of CHF 5 million. Thanks to the successful reorganisation initiative of the departments involving direct client contact, we have been able to pay even closer attention to the client experience.
Balzers (LI) – Bank Frick looks back on a very successful first half of 2021. This success stems from the strategically occupied business segments and therefore making it long-term. In addition, the Bank benefited from the volatility in the markets. This resulted in a net profit of CHF 3.1 million. “We were able to further increase our number of clients and net income also grew in line with recent years. The very pleasing half-year result is a clear sign that the implementation of our strategy, which is based on the traditional and blockchain-based world, has been a complete success,” says Bank Frick CEO Edi Wögerer.
Through this reorganisation initiative, we are improving our service offered to our clients
To ensure that we remain this successful in the future, it is vital for us to focus even more on the client experience – that is, your experience when in contact with Bank Frick. “For this reason, we adapted our vision, our mission and, above all, our guiding principle at the beginning of 2021. Furthermore, last year we analysed how we can further optimise and expand our client service,” explains Wögerer. The analysis led Bank Frick to reorganise the departments with direct client contact in recent months and this reorganisation initiative came into effect in June.
“In recent years, we have made significant investments in technology, regulatory issues, compliance and the establishment of new business models. Thanks to our reorganisation initiative, we can serve our clients even more efficiently. Furthermore, with these changes, Bank Frick is setting the organisational stage for continuing to develop new business models and products that are highly competitive in the international context,” says Wögerer.
Increase in client assets under management
Client assets under management increased by CHF 1.193 million in the first six months of the 2021 financial year to CHF 4.464 million as at 30 June 2021. The increase results in particular from new business in all business segments. Bank Frick also benefited from the high volatility in the markets – especially in the crypto sector. Net new money outflow amounted to CHF 962 million as at the reporting date.
Outlook for the second half of 2021
For the second half of the year, the Bank expects a similar development as in the first six months. “However, we assume that the volatility in the markets will to some extent return to normal. We expect the extraordinary items to have a smaller impact on income than in the first half-year. Based on this starting position, we expect annual results in the order of CHF 5 million,” says Wögerer. Due to the uncertain times as a result of the pandemic, however, Bank Frick budgeted conservatively for the year 2021 and assumed a profit of CHF 3.1 million.
Despite this extremely promising result, Bank Frick also sees major challenges ahead of it. Edi Wögerer: “Various regulatory projects and the expansion of our digital interaction with clients will keep us very busy.”
For Bank Frick, the second half of the year will also be marked by growth. “We will focus on the further development and expansion of our highly efficient departments involved with direct client contact. Thanks to the very good order situation and the consistently high workload completed by our employees, we are planning to create various new positions and expand the existing organisational units,” Wögerer continues.
Further connection between the classic financial world and blockchain-based assets
The traditional financial world is continuing its march towards consolidation with blockchain-based assets. “By continuously monitoring the market, we ensure that our solutions meet the quality requirements of our clients and can survive in a regulated framework. We continue to work every day on further ways to connect the traditional financial world with blockchain-based assets,” Wögerer explains.
A long-term, successful business relationship is based on classic values such as trust and reliability. “As a 100 per-cent family-run bank that has been active in the market for more than 20 years, we now have one foot in the blockchain world and the other in the world of classic banking. We have therefore succeeded in creating a solid foundation and are equipped for being a bank for the future,” says Wögerer.
About Bank Frick
Bank Frick specialises in banking for professional clients. The Liechtenstein bank provides a fully integrated offering of classic banking and blockchain banking services. Its clients include fintechs, asset managers, payment service providers, family offices, fund promoters, pension funds and fiduciaries.
Bank Frick has been family-run since its foundation as a licensed universal bank in 1998, and it adopts an entrepreneurial approach. Today the Bank is entirely owned by the Kuno Frick Family Foundation (KFS). The Bank employs over 140 members of staff at its Balzers office and operates a branch in London, UK.
Bank Frick is one of Europe’s pioneers of the regulated blockchain banking sector. The offering covers trading and custody of crypto assets and token sales. The Bank also develops tailored crypto-structuring solutions for intermediaries.
In addition to its highly regarded basic services, Bank Frick’s classic banking offerings cover services for funds and issues, focusing on formulating European (AIF, UCITS) and national fund solutions. In the capital market sector, Bank Frick develops tailored financial products for intermediaries and supports them along the whole issue process, acting also as a custodian bank.
Bank Frick is the only Liechtenstein bank with acquiring licences from Visa and MasterCard, and it can process card payments globally for payment service providers and their online merchants. In 2019, Bank Frick took over the fintech company Tradico AG, which specialises in finance for goods purchasing for SMEs, and acquired a majority stake in the fintech company 21.finance AG, which operates area2Invest, a digital investment platform for classic and tokenised financial products.