Press «play» to listen to this content
1x
Playback Speed- 0.5
- 0.6
- 0.7
- 0.8
- 0.9
- 1
- 1.1
- 1.2
- 1.3
- 1.5
- 2
wealth management boosts profits at zuger cantonal bank. the zuger cantonal bank reports a positive outcome for the first half of 2024, with particularly strong performance in wealth management. however, the consolidated half-year profit of 60.0 million swiss francs is below last year's figure. the zuger cantonal bank increased its operating income by 1.7 percent to 154.2 million swiss francs in the first half of the year, the bank announced on tuesday. loans and customer deposits also showed positive growth. the net half-year profit of 60.0 million francs is 4.3 percent below last year's record figure. «we have achieved healthy growth in our core business,» commented hanspeter rhyner, ceo of the zuger cantonal bank. loan growth boosts performance. compared to the end of the year, the loan volume increased by 4.8 percent to 15.6 billion francs. customer deposits rose by 117.9 million francs to 13.2 billion francs in the same period. the increase and shifts to fixed-term deposits led to higher interest expenses, according to the zuger cantonal bank. the gross interest income remained at last year's level of 103.4 million francs. adjustments for credit risk and losses from the interest business decreased by 0.8 million francs to 2.6 million francs, resulting in a net interest income of 100.8 million francs, up 1.0 percent. continued growth in wealth management. commission and service fee income rose by 7.5 percent to 41.5 million francs compared to the previous year. benefiting from favorable developments in the financial markets, managed assets increased by 1.1 billion francs to 18.8 billion francs as of december 31, 2023. performance-adjusted, the increase in managed assets amounts to 167 million francs. decline in trading income. trading income fell by 13.1 percent to 8.5 million francs compared to the previous half-year, mainly due to lower interest rate differentials of the swiss franc against major currencies. significant increase in personnel expenses. operating expenses increased by 6.5 percent in the first half, with the cost-income ratio at 43.8 percent (previous year: 41.6 percent). this rise is mainly due to personnel expenses, which grew by 7.3 percent to 44.0 million francs compared to the previous year, driven by increased advisory capacity. other operating expenses rose by 5.4 percent to 23.2 million francs, attributed to investments in it security and the implementation of strategic initiatives in products and services. the bank expects personnel and operating costs to stabilize in the coming year. slightly below last year's record. despite geopolitical uncertainties, the zuger cantonal bank remains optimistic for the second half of the year, especially given the continued positive economic conditions in the canton of zug. however, the bank anticipates that the operating result will be slightly below last year's record level. changes in the bank council. two changes are expected in the bank council of the zug cantonal bank next may: sabina ann balmer and patrik wettstein will not stand for re-election and will thus leave the council. sabina ann balmer has been a member since 2015, and patrik wettstein since 2010.
Wealth Management Boosts Profits at Zuger Cantonal Bank
The Zuger Cantonal Bank reports a positive outcome for the first half of 2024, with particularly strong performance in wealth management. However, the consolidated half-year profit of 60.0 million Swiss francs is below last year's figure.
The Zuger Cantonal Bank increased its operating income by 1.7 percent to 154.2 million Swiss francs in the first half of the year, the bank announced on Tuesday. Loans and customer deposits also showed positive growth. The net half-year profit of 60.0 million francs is 4.3 percent below last year's record figure. «We have achieved healthy growth in our core business,» commented Hanspeter Rhyner, CEO of the Zuger Cantonal Bank.
Loan Growth Boosts Performance
Compared to the end of the year, the loan volume increased by 4.8 percent to 15.6 billion francs. Customer deposits rose by 117.9 million francs to 13.2 billion francs in the same period. The increase and shifts to fixed-term deposits led to higher interest expenses, according to the Zuger Cantonal Bank. The gross interest income remained at last year's level of 103.4 million francs. Adjustments for credit risk and losses from the interest business decreased by 0.8 million francs to 2.6 million francs, resulting in a net interest income of 100.8 million francs, up 1.0 percent.
Continued Growth in Wealth Management
Commission and service fee income rose by 7.5 percent to 41.5 million francs compared to the previous year. Benefiting from favorable developments in the financial markets, managed assets increased by 1.1 billion francs to 18.8 billion francs as of December 31, 2023. Performance-adjusted, the increase in managed assets amounts to 167 million francs.
Decline in Trading Income
Trading income fell by 13.1 percent to 8.5 million francs compared to the previous half-year, mainly due to lower interest rate differentials of the Swiss franc against major currencies.
Significant Increase in Personnel Expenses
Operating expenses increased by 6.5 percent in the first half, with the cost-income ratio at 43.8 percent (previous year: 41.6 percent). This rise is mainly due to personnel expenses, which grew by 7.3 percent to 44.0 million francs compared to the previous year, driven by increased advisory capacity.
Other operating expenses rose by 5.4 percent to 23.2 million francs, attributed to investments in IT security and the implementation of strategic initiatives in products and services.
The bank expects personnel and operating costs to stabilize in the coming year.
Slightly Below Last Year's Record
Despite geopolitical uncertainties, the Zuger Cantonal Bank remains optimistic for the second half of the year, especially given the continued positive economic conditions in the canton of Zug. However, the bank anticipates that the operating result will be slightly below last year's record level.
Changes in the Bank Council
Two changes are expected in the Bank Council of the Zug Cantonal Bank next May: Sabina Ann Balmer and Patrik Wettstein will not stand for re-election and will thus leave the council. Sabina Ann Balmer has been a member since 2015, and Patrik Wettstein since 2010.
