Bank Zimmerberg, founded in 1820 and one of the oldest institutions in Switzerland, has reported a positive half-year result. Profit increased by 2 percent to 1.72 million Swiss francs in the first six months of this year, and for the first time, total assets exceeded the milestone of 1.5 billion Swiss francs (up 4 percent), according to figures released yesterday.

The regional bank particularly excelled in its securities and investment business, with a half-year result of 1.7 million Swiss francs, 9 percent higher than the previous year.

Interest Rate Hikes Passed on Directly

Due to various projects, including IT modernization and staff expansion, operating expenses rose, causing operating income to decrease by 1.8 percent to 11.5 million Swiss francs; last year, it had increased by 40 percent.

In the interest business, gross profit fell by 4.1 percent to 9.2 million Swiss francs compared to the previous year. This is due to Bank Zimmerberg’s policy of consistently passing on higher interest rates to customers, which is reflected in the income statement.

Growth in Mortgage Business Without External Funds

Revenue from commission and service business slightly increased to 1.8 million Swiss francs. Since July of this year, Bank Zimmerberg has been handling investment administration in interbank business for a second institution.

As liquid assets and higher mortgage claims developed evenly, growth in the mortgage business was financed without additional external funds.

Customer deposits, on the other hand, increased by 31 million Swiss francs.

For the second half of the year, Bank Zimmerberg expects further interest rate cuts from the Swiss National Bank, leading to a decline in revenues. The bank is focusing on customer proximity: «We are expanding our customer service area to respond to inquiries even faster and more effectively», says CEO Oliver Jaussi.