At the moment, however, the coronavirus crisis is leaving a mark on the loan portfolio of VP Bank Group, requiring a larger valuation adjustment to one individual position of approximately CHF 20 million.
Supplemental stress tests on outstanding loans that we have regularly been performing over the past several days currently do not show any additional need for a provision. The quality of VP Bank Group’s loan portfolio remains high.
Because of the uncertain situation surrounding the coronavirus, we cannot make any reliable forecasts about further developments on the financial markets and thus about our annual results. However, we can today state that apart from this larger valuation adjustment on one individual position in the first quarter of 2020, VP Bank Group posted results that on whole are satisfactory. We are particularly pleased that because of the essentially defensive orientation of the portfolios, asset management has to date performed well compared with the rest of the sector.