Vontobel Holding AG revised its 2020 profitability targets following the acquisition of Notenstein La Roche Privatbank AG and a subsequent increase in the Swiss bank's client base.

The lender now expects its return on equity to exceed 14%, compared to the previous target of 12%, while it also aims to achieve a cost-to-income ratio of less than 72%, down from 75% previously. As of June 30, the bank's ROE and cost-to-income ratio stood at 15.1% and 72.0%, respectively, compared to the year-ago 12.9% and 76.1%.

"Vontobel expects to be faced with a relatively difficult market environment in the second half of 2018 that will require a prudent approach," CEO Zeno Staub said. "Nevertheless, we aim to further increase our already solid profitability in the current financial year compared to 2017."

Vontobel reported first-half group net profit attributable to shareholders of CHF127.7 million, up from CHF98.7 million a year ago. Total client assets stood at CHF253.6 billion at the end of June, up from CHF207.7 billion a year earlier.