In the first six months of this year, Migros Bank achieved an operating income of 187 million francs, a decrease of 7.5 percent compared to the same period last year. The net profit fell to 153 million francs, down 7.8 percent.

The decline is partly attributed to developments in interest rate business. Despite the Swiss National Bank's interest rate cuts, Migros Bank shared higher account interest rates with customers, which reduced net interest income. This fell by 7.7 percent compared to the previous year, totalling 301.3 million francs.

This also impacted total operating income, which amounted to 402 million francs, 3 percent lower than the previous year.

Cumulus Card Drives Customer Growth

Migros Bank achieved strong growth in the first half of the year in its commission business, with a 26.4 percent increase, reaching 58.4 million francs. This success is largely attributed to the positive developments in the card business, particularly with the continued strong performance of the Cumulus credit card. As a result, the bank's total customer base, including cardholders, increased to 1.15 million, reflecting a 2.7 percent increase.

In the investment sector, the value of securities held by customers in Migros Bank's accounts increased by 7 percent to 16.8 billion francs.

Little Movement in Mortgage Business

In the mortgage and real estate market, customer loans remained rellatively stable at 49.8 billion francs as of June 30, 2024, reflecting a slight decrease of 0.2 percent. With a total capital ratio exceeding 20 percent, Migros Bank is among the most capital-strong retail banks in Switzerland.

The cost-income ratio slightly increased to 47.4 percent compared to 46.2 percent at the end of 2023.