St.Galler Kantonalbank increased its business volume by 5.9% to CHF 96.3 billion. It was able to acquire CHF 1.8 billion in net new money in the first half of the year. As of the end of June, it managed CHF 63.0 billion in customer assets (+7.2%). The growth is broadly based across all business areas.
Customer loans reached a new high of CHF 33.3 billion (+3.6%). In addition to mortgages to private individuals and loans to companies, real estate investors once again contributed to this growth.
Group profit slightly lower
At CHF 100.4 million, consolidated profit in the first half of 2024 was slightly lower than in the exceptionally strong previous year (CHF 108.4 million). Gross income from interest operations was significantly lower than in the previous year (-12.1%). While the Swiss National Bank increased interest rates in three steps from 0.5% to 1.75% in the first half of 2023, the first half of 2024 was characterized by interest rate cuts back to 1.25%. Typically, interest income benefits in times of interest rate increases, while interest rate cuts tend to have a dampening effect. The SGKB increased interest on savings and pension accounts in January, April, June and December 2023. Compared to the previous year, customers were paid correspondingly higher interest on their deposits.
The balanced business model of the St.Galler Kantonalbank has once again proven its worth. The profit from commission and service business (+7.6%) and trading profit (+1.6%) benefit from the growth and the good development of the financial markets, but cannot fully compensate for the decline in interest income.
The continued strong growth is reflected in operating expenses (+3.1%). The increase in wages and the investment in newly created jobs led to a 1.9% increase in personnel expenses. Material expenses rose by 5.4%. The main reasons are higher IT operating costs and the general inflation effects.
Outlook 2024 results
St.Galler Kantonalbank continues to expect results for the 2024 financial year to be at the previous year’s level.
