For the first half of 2024, Banca Stato reported an operating result of 85.7 million francs, marking a significant decline of 16 percent compared to last year. However, the bank is content, citing that the comparison period was exceptionally strong. Compared to 2022, they have doubled their results, according to their statement on Monday.

The group's profit amounts to only 61.2 million francs (-31.2 percent) due to the increase in the allocation to the general banking risk reserve from CHF 8 million to 20 million francs.

Headwinds in Interest Business

As with most other banks, the monetary policy shift by the central bank has impacted the interest business. The effect has been mitigated by volume growth and a prudent refinancing strategy. Nevertheless, net income from core operations has decreased by 5.1 percent to 134.2 million francs.

The increase in commission and service fee income remains modest at 1.4 percent, while other banks appear to have benefited more from favorable market conditions. Banca Stato earned 31.9 million francs in this area.

Significant Rise in Personnel and Operating Costs

Operating expenses have risen sharply. Personnel costs increased by 11 percent (to 54.8 million francs), and operating expenses grew by 19.2 percent to 34.5 million francs. The bank attributes this increase somewhat vaguely to measures aimed at strengthening the organizational and management structure in response to the constant growth of business volume.

The increase in the mortgage business is relatively modest at 1.7 percent, reaching just over 12 billion francs. However, loans to individuals and businesses have been significantly raised by 10.4 percent to 1.9 billion francs. This suggests that Banca Stato is filling the gap left by Credit Suisse in the corporate client segment.

Client Reallocation

Client deposits have declined, totaling 11.7 billion francs (-1.3 percent). The bank explains that clients have shifted liquid assets into other investment forms. Managed assets increased by 4.6 percent to 22.7 billion francs, although net new money inflow was modest at 53 million francs.

The balance sheet total has grown by 3.4 percent to 18.6 billion francs. Banca Stato is satisfied not only with the group’s results but also with the development of its private banking subsidiary, Axion Swiss Bank.