Banks Valiant increases profit in the first half-year

Bank Valiant felt the effects of the changed interest rate environment in the first half of 2024. Although the bank continued to increase its operating income and profit, this was not quite as strong as analysts had expected in advance.

The bank's operating result rose by 11.4 percent to CHF 116.8 million in the first six months compared to the first half of the previous year, as Valiant announced on Thursday. However, analysts had expected an average of 119.5 million.

Due to the increased business success, Valiant strengthened its reserves for general banking risks by 24.0 million francs, it added. The bottom line was a 6.0 percent higher net profit of CHF 71.3 million.

Interest rates lowered in July

The operating income of the bank, which operates throughout Switzerland, increased by 3.9 percent to CHF 276.5 million. In the important interest business, net income was flat at 196.0 million (+0.3%). The bank attributes this to the changed interest rate environment and the fact that interest rates on deposits will remain unchanged until the end of June 2024.

Following the first interest rate cut by the Swiss National Bank (SNB), Valiant initially left its interest rates on payment, savings and pension accounts unchanged. However, after the second interest rate cut in June, the bank followed suit and lowered interest rates as of July 1.

The bank remains confident for 2024 as a whole and continues to expect a higher consolidated profit.

The current year also marks the end of the 2020 to 2024 strategy period. Valiant set itself new targets for 2029 back in June. It wants to increase profitability and continue to grow.