The Ticino Cantonal Bank is satisfied with its half-year result for 2024, although it is significantly below the previous year. The high increase in operating expenses does not seem to worry them either.
The Ticino Cantonal Bank (Banca Stato) generated a business result of 85.7 million Swiss francs in the first half of 2024 that was significantly below the previous year’s figure (-16 percent), but is nevertheless satisfied because the comparable period was exceptionally strong. Compared to 2022, the Ticino-based company calculates in its Message from Monday before.
The group’s profit is only 61.2 million francs (-31.2 percent) because the allocation to the reserve for general banking risks was increased from 8 million to 20 million francs.
Setback in interest business
As with most other banks, the National Bank’s change in monetary policy is affecting the interest business. The effect was cushioned by an increase in volume and a prudent refinancing strategy. The bottom line, however, is that net profit in the core business fell by 5.1 percent to 134.2 million francs.
The increase in commission and service business remained modest at 1.4 percent, where other banks apparently benefited more from the positive mood on the stock market. Banca Stato earned 31.9 million francs in this area.
Significantly higher personnel and material costs
Operating expenses have grown significantly. Personnel costs have risen by 11 percent (54.8 million francs), and operating expenses have even risen by 19.2 percent to 34.5 million francs. The increase is explained somewhat generally by the measures to strengthen the bank’s organizational and management structure against the backdrop of the constant increase in business volume.
However, the increase in mortgage business, at 1.7 percent to just over 12 billion francs, is modest. At least loans to private individuals and companies increased significantly by 10.4 percent to 1.9 billion francs. This indicates that Banca Stato is filling the gap left by Credit Suisse in the corporate customer business.
Customers are shifting
Customer deposits declined, amounting to 11.7 billion francs (-1.3 percent). Customers had shifted liquid assets into other forms of investment, the bank explained. Assets under management rose by 4.6 percent to 22.7 billion francs, although the net inflow of new money was modest at 53 million francs.
The balance sheet total grew by 3.4 percent and now stands at 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.
