Banks Zuger Kantonalbank earns slightly less in the first half of the year
Zuger Kantonalbank (ZGKB) earned slightly less in the first half of 2024 than in the previous year. However, operating income increased slightly.
16.07.2024, 07:49
SDA
According to a statement issued on Tuesday, operating income rose by 1.7 percent to 154.2 million francs in the first half of the year. However, due to the increase in expenses, in particular due to the expansion of consulting capacities and investments in strategic projects, operating profit as a measure of operating performance fell by 3.8 percent to 70.4 million francs.
The bottom line was a net profit of CHF 60.0 million, which corresponds to a decrease of 4.3 percent. This was in line with expectations, the bank announced.
Gross profit in interest business maintained
Thanks to credit growth as well as measures in balance sheet management and interest rate risks, the gross profit in the interest business was more or less maintained at 103.4 million. Net income from this business increased by 1.0% to CHF 100.8 million.
Net income from the commission and services business also increased by 7.5 percent to CHF 41.5 million. The trading business recorded a decline of a good 13 percent to 8.5 million francs.
On the assets side of the balance sheet, the credit volume increased by just under 5 percent to CHF 15.6 billion. On the liabilities side, customer deposits increased by 0.9 percent to CHF 13.2 billion.
The bank attributes the net new money inflow of CHF 1.1 billion in custody assets in the first half of the year to the favorable development on the financial markets. Assets under management thus rose to 18.8 billion.
Solid second half expected
ZGKB expects a "solid course of business" for the second half of 2024. Inflation in Switzerland has once again reached the Swiss National Bank's target range, and with the current global economic environment, it is possible that the key interest rate will be lowered further in the second half of 2024. However, the operating profit as an expression of the operating result is likely to be slightly below the record level of the previous year.
