Wednesday, January 17, 2024 – Editor
Various media have reported on Obwaldner Kantonalbank (OKB)’s involvement with a group of investors in the retail and real estate sector that has run into difficulties – this refers to René Benko’s Sigma Holding. The CEO of OKB, Margrit Koch, leads by example and explains the background, while other Swiss banks are diving into the same matter.
The OKB has apparently achieved a waiver of banking secrecy for certain matters in order to be able to provide information about this financing. It is a commitment in the form of a mortgage-secured syndicated loan in which several banks are involved, she states in a written communiqué.
At the end of the 2023 financial year, OKB reported 32 million francs in provisions and value adjustments for credit risks. This risk provision adequately takes into account the current risk situation on the entire portfolio of customer loans.
Margrit Koch, CEO of Obwaldner Kantonalbank (OKB)
The OKB has been involved in a non-cantonal syndicated loan with 24.3 million francs since 2020. This financing was granted to a real estate company owned by several investors. The loan is secured by a first-class mortgage. A fully rented property in a prime location in the city center of Zurich serves as security. To date, all interest and amortization has been paid in accordance with the contract, the OKB reports, and continues:
The lending business is part of OKB’s core business. As the leading mortgage institution in the canton, it has customer loans totaling almost 4,200 million Swiss francs. “Of the approximately 4,200 million francs in loans, more than 93 percent are covered by mortgages,” says Margrit Koch, CEO of OKB. Of these, over 92 percent of the mortgaged properties are located in the canton of Obwalden and neighboring cantons. OKB does not finance any properties outside of Switzerland. In all of its transactions, the OKB is guided by the Cantonal Banking Act, the ownership strategy and all regulatory provisions and carefully weighs the risks. As part of its strategy and business model, OKB carries out both Switzerland-wide financing and syndicated loans to a very limited extent. This is in the spirit of professional risk management, for example geographical diversification.
Nevertheless, it can happen that a borrower gets into trouble. The bank therefore continually assesses its portfolio and creates provisions and value adjustments for inherent and directly assigned risks. Margrit Koch explains: “At the end of the 2023 financial year, OKB reported 32 million francs in provisions and value adjustments for credit risks. This risk provision adequately takes into account the current risk situation on the entire portfolio of customer loans and suggests a solid business model and a restrictive risk policy.”
2024-01-17 16:51:04
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