Glarner Kantonalbank ended the first half of the year with a net profit of 12,1 million francs. This represents a decrease of 7,1 percent compared to the previous year, according to figures published on Friday.

The state institution explains the decline with «additional investments in personnel and forward-looking projects.» For example, a digital 3a pension solution was launched in collaboration with Leonteq, and personnel expenses increased by 5,1 percent compared to the same period last year. Behind the higher personnel expenses are an expansion of staff and a wage increase (inflation adjustment).

Stable Interest Business

The interest business developed very stably, closing net at 34,2 million francs, 0,3 percent higher than in the previous year. Interest income increased by 21,1 percent. This was offset by an additional rise in interest expenses of 33,7 percent.

In the commission and service business, despite increased expenses, total income rose to 8.4 million Swiss francs. Both the investment business and income from services for third parties («B2B») saw growth.

In trading, the previous year was marked by extraordinary opportunities. Since the first half of 2024 saw fewer refinancing activities through foreign currencies, income from currency swaps was lower.

Slowing Cost Growth

Cost growth was further curbed in the first half of 2024. Operating expenses increased by 3,5 percent overall, which represents a reduction of 0,7 percent compared to the previous year.

«Given the competitive market environment and the rapidly changing interest rates, I am satisfied with the half-year results for 2024,» said CEO Sven Wiederkehr.