Banks Basler Kantonalbank increases profit in 2024 and pays special dividend
Basler Kantonalbank (BKB) has once again increased its profit in the 2024 financial year. However, like other domestic banks, the financial institution from the city canton felt the effects of the more difficult interest rate environment.
20.02.2025, 07:30
SDA
Nevertheless, an anniversary dividend will be added to the ordinary distribution for 2024. The financial group, which includes Bank Cler as well as the BKB parent company, announced on Thursday that its operating result fell slightly by 0.2 percent to CHF 275.2 million.
Thanks to the growth in both customer loans and customer deposits, consolidated profit rose by 10 percent to CHF 186.3 million. The Group's cost/income ratio deteriorated slightly to 54.8 percent (previous year 52.5 percent) due to higher personnel expenses and expenditure for the anniversary campaigns, but remains within the target of "below 55 percent".
The holders of BKB-PS will receive an unchanged ordinary dividend of CHF 3.25 per participation certificate as well as an additional withholding tax-free special dividend of CHF 1.25 for the past anniversary year, i.e. a total of CHF 4.50. The canton of Basel-Stadt will benefit from a total distribution of CHF 137.2 million (previous year: CHF 92.6 million).
Interest business brings in less
Overall, the BKB Group's operating income fell by 1.8 percent to 662.7 million francs. Both the most important earnings pillar, the interest business (gross interest income -1.5 percent), and net trading income (-13.1 percent) were below the previous year's figures. The bank emphasizes the narrower interest margins following the SNB's interest rate cuts.
Thanks to the focus on asset management, however, the custody account volume increased (+8.5 percent) and, as a result, income from the commission and services business (+4.8 percent).
At the parent bank BKB, profit momentum was somewhat better than in the Group. The operating result improved significantly with an increase of 5.5 percent to 225.9 million francs. At the bottom line, the Cantonal Bank increased profit at its parent bank by just under 10 percent to CHF 172.9 million.
For the current year 2025, the bank is focusing on developing the "2026+" strategy under the leadership of new CEO Regula Berger, which is intended to set new priorities.
According to the outlook, the financial markets should have no shortage of challenges with geopolitical tensions, rising sovereign debt and economic uncertainties. However, the bank is "convinced that the BKB Group will be able to build on the pleasing result of 2024".
