Banks GKB posts another record profit - bank president steps down early

Graubündner Kantonalbank (GKB) earned slightly less operationally in the first half of 2024. However, the bottom line was once again a record profit thanks to special effects. Bank President Peter Fanconi is stepping down at the PS Meeting 2025.

Operating profit amounted to 132.8 million francs in the first six months, down 2.1 percent on the record figure for the same period of the previous year. In its press release on Thursday, the bank explained the decline in particular with the investments made in the further development of the bank.

In contrast to the business success, the consolidated profit increased by 12.1 percent to a new record of 133.6 million in the first half of the year. This was helped by the extraordinary profit of CHF 4 million from the sale of the stake in Twelve Capital Holding. In addition, no allocation was made to the reserves for general banking risks. In the same period of the previous year, CHF 15 million had been allocated to these reserves.

Higher interest income

Operating income increased by 2.9 percent to 267.6 million in the first half of the year. All income components except other ordinary income increased. In the interest business, which is traditionally the most important for the Kantonalbank, net income increased by 3.6% to 167.2 million.

Costs rose somewhat more strongly than income in the first half of the year. The cost-income ratio II (including depreciation and amortization) therefore deteriorated slightly to 48.6 percent after 45.9 percent in the previous year.

With the publication of the half-year results, the GKB management is raising its previous outlook for the year as a whole. The new target is a consolidated profit of CHF 210 to 230 million (previously CHF 200 to 220 million). GKB is assuming a further interest rate cut by the SNB and stable capital markets.

Bank president Fanconi to step down in 2025

Together with the half-year results, the Graubünden-based state institution has announced the early resignation of Bank President Peter Fanconi at the PS Meeting in 2025. He will leave the bank at the end of the extremely successful 2021-2025 strategy cycle, allowing the government to make a "prudent succession plan", according to the press release.

Fanconi was originally re-elected for a third term of office from 2022 to the end of March 2026. The Bank Council and Executive Board of GKB would like to thank Peter Fanconi for his successful work. Fanconi recently came under pressure in connection with GKB's controversial lending to investor René Benko's collapsed Austrian real estate group Signa.

However, the audit report commissioned in this regard exonerated the bank president. In the meantime, GKB has implemented the reporting and disclosure requirements proposed by the auditor EY in its report. The adjustments are currently being reviewed by FINMA, GKB added.

In an interview with the news agency AWP, Fanconi denied any connection between his resignation and the Benko case. There had been no political pressure of any kind: "On the contrary, people were trying to persuade me to stay."

The large syndicated loan to Signa for the Zurich Globus is being serviced and amortized correctly, Fanconi emphasized: "We have not made any value adjustments on it."