Lower interest rates weighed on PostFinance's business in 2024. The Swiss Post subsidiary reported a 23 percent drop in operating profit to 203 million Swiss francs, according to figures published on Thursday.

Revenue declined by 2,8 percent to 1,20 billion francs. After applying accounting standards for banks (RVB), a net profit of 120 million francs remained, a decrease of around 27 percent.

Interest Business as Key Revenue Source

The volatile interest rate environment has increased pressure on margins. PostFinance is not allowed to grant mortgages and loans independently. Nevertheless, interest margin business remains its most important revenue source.

Net interest income fell by 11 percent to 457 million francs. In contrast, income from service and commission business increased by 4,1 percent to 404 million francs, while trading business revenue rose by 7,5 percent to 230 million francs.

Fewer Customers

Customer assets amounted to 106,1 billion francs at the end of 2024, 2,5 billion francs above the previous year's value. The number of customers declined to 2,40 million from 2,43 million previously. However, the number of employees (full-time equivalents) increased to 3'486 from 3'340.

«Four years in a difficult environment have led to declining interest income and increasing margin pressure,» the statement said. «The negative impact on customer base development was consciously, albeit necessarily, accepted.»

SNB Minimum Reserve Increase as a Negative Factor

The institution also pointed out that the Swiss National Bank (SNB) increased the non-interest-bearing minimum reserve that PostFinance must hold as security in its account at the SNB. «As a result, income from the interest on SNB deposits has declined.»

PostFinance plans to focus more on non-interest-related business. This includes areas such as investments, trading, card services, and payment transactions. The company aims to align itself even more closely with the needs of its private and corporate customers in these segments.