Bank Zimmerberg reportet a profit of 3.44 million Swiss francs for 2024. This is 2.1 percent more than in the previous year. The result confirms the sustainable growth strategy, according to a press release on Friday.

However, at 7.0 million francs, the business success was around 16 percent below the record figure from 2023, it added. The figure was in line with the budget. 40 percent of the profit was allocated to the reserves for general banking risks. The unallocated reserves for general banking risks were strengthened by 2.8 million francs to 33.6 million francs.

Unexpected Early Interest Rate Cuts

A decline had to be accepted in the interest business, the bank's most important pillar of income. The market did not develop as forecast. The reason for this was the unexpectedly early and repeated interest rate cuts by the Swiss National Bank and the associated lower interest income. «The bank deliberately only passed on some of these interest rate cuts so that customers could benefit from stable conditions, which contributed significantly to the higher interest expense,» it continued.

Net inerest income fell by 14.5 percent to 17.1 million francs. In a multi-year comparison, this is a very good result.

Higher Commission Income

Income from the commission and service business rose by 9.2 percent. Commission income from services contributed 3.6 million francs to total income, followed by commission income from other services at 0.8 million francs (+3.6 percent). Other income increased by 23 percent and is attributable to the expansion of interbank business in the area of financing and securities administration.

At 22.2 million, operating income was 10 percent below the previous year's result.

Operating expenses increased by 13 percent to 14.7 million francs. The bank points to higher material costs due to various projects, such as the expansion of additional workstations in the Seehallen in Horgen for an expanded customer service team.