Zürcher Landbank ends the first half of the year with an operating profit of 2.5 million Swiss francs, representing an increase of 18.7 percent. According to the figures published on Friday, profit climbed to 1.9 million francs (+19.1 percent).

According to a statement by the regional bank, this success is primarily due to the more efficient IT structure and the increase in mortgage volumes.

In the first half of the year, Zürcher Landbank was able to finance mortgages worth over 12.4 million francs (+1.4 percent) for its customers. The bank notes that refinancing the rising customer loans remains a challenge.

Interest Rate Business Falters

The volume of customer deposits increased by 2.4 million francs (+0.3 percent).

In the interest rate business, a central area for the bank, the conditions have become more difficult due to interest rate cuts. Overall, the gross interest income in the first six months of this year was 0.2 million francs lower than the previous year. Zürcher Landbank expects this trend to continue in the second half of the year.

Results likely to be below those of 2023

Due to the challenges in the interest margin business, Zürcher Landbank expects a demanding second half of the year. It anticipates closing the current year with a profit slightly below that of 2023.