New Fricktaler Zeitung | AKB with very good results

Business income at a record level of 409 million francs

The Aargauische Kantonalbank (AKB) presents successful figures for 2020. With a business success of 192.9 million francs, it achieved the third-best operating result in its history.

Dieter Widmer, President of the AKB is very satisfied with the past year: “We have proven our capabilities. All locations remained open during the lockdown, which our customers really appreciate. ” Another highlight was the growth of CHF 1.5 billion in customer assets, which amounted to CHF 30.1 billion at the end of the year. In 2020, AKB increased its own funds to a total of 2.5 billion and its profit to CHF 138 million. The board of directors is therefore requesting a profit transfer to the canton of Aargau of CHF 67.0 million and compensation of CHF 11.1 million for the state guarantee.

300 million COVID-19 loans
In the turbulent Corona year, the AKB offered bridging aid in the form of amortization suspensions and liquidity injections to companies that had liquidity problems through no fault of their own due to the corona virus and who have an intact business model. As part of the federal and cantonal Covid-19 loan programs, over 2,100 loans totaling around CHF 300 million were granted, of which CHF 160 million was claimed at the end of the year. 4 percent of the applications were rejected due to a lack of formalities or requirements. The suspected abuse cases could thus be clearly restricted. Only a handful of cases had to be reported or reported to the authorities.

In the SME sector, credit limits (excluding Covid loans) were expanded by over 100 million francs net, despite the difficult market environment. Excess liquidity, negative interest rates and a reduced propensity to invest led to many loan repayments. This can also be seen in the unchecked increase in SME and corporate assets of 788 million francs (+ 25.7%). Mortgages for owner-occupied residential property (single-family houses and condominiums) also rose as planned by 2.9 percent or CHF 308 million. As the AKB notes, this has enabled it to further consolidate its leading position in granting mortgages to private individuals in its market area.

As in the case of SMEs, customer deposits also increased in the private sector. This effect is more pronounced in times of lockdown and is an indication of reduced consumption. At the same time, the investment requirement increased. With 765 million francs net new investments in securities and a further 200 million increase in value, the portfolio increased to 14.2 billion (+ 7.2%). These assets now amount to 52 percent of the portfolio. Without corporate assets, customer assets exceed the CHF 30 billion mark for the first time. The earnings development at AKB continues to be very positive. With the record high business income of 408.7 million francs, the threshold of 400 million was exceeded for the first time. The value adjustments and losses on loans amounted to 1.1 million francs net in the year under review. President Dieter Widmer said: “Towards the end of the reporting year, we had to make more value adjustments for SMEs and corporate customers who are affected by the economic consequences of the corona pandemic. Overall, however, we are pleasantly surprised at how little the events to date have had on our loan portfolio. ” The business success, which reflects the success from the operational business activity, amounts to an excellent 192.9 million francs and is thus 10.6 million above the value of the comparable period of 2019. The AKB thus recorded the third highest business success in its long history.

Higher risk provisions
The uncertain economic situation due to the pandemic has prompted the bank to additionally increase risk provisioning by allocating it to the reserves for general banking risks. The allocation amounts to CHF 46.7 million (+ 72.3%) and leads to a reduced annual profit of CHF 138.2 million. For the next few years, AKB has set itself the goal of becoming the most sustainable bank in the canton of Aargau. The launch of the Green Mortgage and Green Bond in 2020 represented a start. AKB is confident about the new financial year 2021, but expects a lower operating result. (WH)

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