Banks Migros Bank makes less profit in the first half of the year
Migros Bank generated slightly lower income in the first half of 2024 than in the previous year and earned less at the bottom line.
27.08.2024, 08:49
SDA
Operating profit, a measure of the operating result, fell by 7.5 percent to CHF 186.5 million in the first half of the year, as Migros Bank announced on Tuesday. At the bottom line, profit fell by 7.8 percent to 152.7 million francs.
One of the reasons for the decline was the lower operating income. This fell by 3.0 percent to 402.3 million. In the central interest business, the normalization of the interest rate environment resulted in a 7.7% decline in net income to CHF 301.3 million. Despite the interest rate cut by the SNB, Migros Bank left account interest rates unchanged at a high level.
Net income from trading operations, on the other hand, increased by 10.3 percent to 35.4 million francs. Net commission income also increased by a strong 26.4 percent to 58.4 million francs. This development is attributable in particular to the card business with the growing Cumulus credit card portfolio. Taking card customers into account, the total customer base rose by 2.7 percent to 1.15 million.
Cost-income ratio slightly higher
The slight decline in income was offset by a slight increase in costs of 0.6 percent to CHF 199.7 million in the first half of the year. The cost-income ratio therefore deteriorated slightly to 47.4 percent from 46.2 percent in the same period of the previous year.
Mortgage loans decreased minimally by 0.3 percent to 46.2 billion in the first six months. Customer deposits increased by 1.1 percent to 45.2 billion.
Outlook vague
Migros Bank is reluctant to provide a concrete outlook. Geopolitical risks continue to exist and economic developments are being closely monitored, it said. However, Migros Bank is strategically and financially well positioned.
