AEK Bank reported a profit of 5.34 million Swiss francs in the first half of the year, a 1 percent increase compared to the same period last year, according to a statement from the institution.

Driven by strong demand in the mortgage business, loans increased by 145.6 million Swiss francs.

The first half also saw a positive development in net new money inflows, which rose by 67.7 million Swiss francs to a new total of 4.32 billion Swiss francs. Loans grew by 145.6 million Swiss francs to 4.86 billion Swiss francs, accounting for 87 percent of the total balance sheet of 5.58 billion Swiss francs.

Interest Business Performs Better

In addition to refinancing with its own customer funds, the bank raised 41.7 million Swiss francs through mortgage bond loans in the first half of the year. Gross profit in the interest business was 0.7 million Swiss francs higher than the previous year.

Commission and service business also saw growth, particularly in securities trading and higher ATM location revenues, increasing by 0.2 million Swiss francs. Trading profits, bolstered by foreign exchange business, rose by 0.1 million Swiss francs to 1 million Swiss francs.

Costs increased by 4.4 percent compared to the previous year. Operating profit stands at 10.3 million Swiss francs.

Optimistic for the Second Half

The development of interest rates has a significant impact on earnings, with about 90 percent of AEK Bank's total revenue derived from this area. Given the current interest rate levels and expectations, the regional bank is optimistic that 2024 will be a successful year.