The theft at Zürcher Landbank in Elgg, which became public in May, has now led to impairments at the regional bank. Profit fell sharply.

The Zürcher Landbank (ZLB) stated in its half-year report that it was looking back on an eventful first half of 2025. The expenses resulting from the suspected embezzlement are estimated at 0.4 million francs.

«The bank is working intensively to recover the stolen funds through legal action and insurance payments, so that the impairments can eventually be reversed,» the statement added.

In May, an article on «Inside Paradeplatz» revealed that employees had allegedly stolen money from an open vault. Investigations by the Zurich public prosecutor's office are underway against two Swiss women and one Swiss man aged between 28 and 54. The presumption of innocence applies.

ZLB described the incident as a major event in the first half of the year. «Client funds were never at risk,» the bank confirmed and has filed charges.

Net Interest Income Under Pressure

The bank's operating business was negatively impacted by interest rate cuts by the SNB. As a result, interest income fell by 1.4 million francs compared to the same period last year. Through the launch of a shareholder package with preferential interest rates and a new tranche of savings bonds, interest expenses were reduced by only 0.5 million francs.

Gross interest income decreased by 15 percent year-on-year to 5.0 million francs.

Higher Mortgage Volume and Client Deposits

Despite targeted portfolio adjustments, the mortgage volume rose by 3.8 million francs to 900.3 million francs. Client deposits increased by 6.2 million francs.

Other business areas remained in line with the previous period, the statement said. Commission and fee income declined by 3.7 percent to 711,000 francs, while income from trading and the fair-value option fell by 14 percent to 185.000 francs.

Operating expenses rose slightly by 0.9 percent to 4.29 million francs.

Significant Profit Decline

For the first half of the year, profit after taxes totaled 1.02 million francs, representing a decline of approximately 48 percent compared with the prior-year period.

The outlook refers to existing uncertainties. The bank expects a consolidation at a low earnings level. For the full year 2025, results are expected to be in the range of those achieved before the record years.