Banks Nidwaldner Kantonalbank significantly increases half-year profit

Nidwaldner Kantonalbank (NKB) benefited from significantly higher income in the interest business and a growing investment business in the first half of the year and significantly increased its profit. The state-owned bank believes it is on track with its Strategy 2022 to 2026.

Despite higher operating expenses for the implementation of the strategy, the operating profit as a measure of the operating result climbed by 54 percent to 22.9 million francs. After building up reserves almost twice as high as in the same period of the previous year, net profit increased by 13.2% to CHF 7.8 million.

Rapid mortgage growth

The bank made significant gains in the interest business, where NKB was able to release almost CHF 2 million in value adjustments due to default risk. As a result, net income rose by 21 percent to CHF 35.4 million.

NKB did well in the lending business. Mortgage receivables, which account for the majority of loans, rose by 3.5 percent to CHF 4.7 billion compared to the end of 2023, despite persistently high real estate prices.

Kantonalbank was also able to expand its securities and investment business, which was reflected in a further increase in custody account volumes and an inflow of new money of CHF 82 million. Income from the commission and services business increased by 10 percent to CHF 6.4 million.

Meanwhile, operating expenses also rose significantly (+7.3% to CHF 21.3 million), not least due to higher investments as part of the "Uisblick" strategy. "Various milestones" have already been reached. The new mobile banking app is mentioned, for example.

Changes to the Executive Board and Bank Council

Stefan Portmann is joining the Executive Board, as NKB reports. He will take over the newly created Market Services division on October 1. At the beginning of 2025, NKB will implement a new organization, with the Executive Board being divided into the Bank Management, Private & Corporate Clients, Market Services and Corporate Center divisions.

The current Head of Logistics & Services, Andreas Mattle, will continue in his role until the end of 2024. Until his retirement in May 2025, he will support NKB in an expert role in the project area.

NKB has also announced a change in the Bank Council. Following the resignation of Iwan Scherer, the Government Council has appointed Oliver Durrer as his successor.