BCN: Robust semi -annual results despite the low interest rates

The operating profit of 39.0 million francs is slightly higher than the expectations, however decreasing compared to the first half of 2024. For example,

Mortgage activity. However, fundraising to customers as well as securities and investment operations were more supported during the first half of the year. Therefore, This allowed the Neuchâtel cantonal bank to partially compensate for the pressure exerted on its margin of interest by. Moreover, the low level of rates on the franc. For example, The operating profit of 39.0 million francs is thus slightly higher than the expectations, however decreasing compared to the first half of 2024. However, For the second half, the bank also expects a drop in its result, but to a lesser extent.

Operating profit superior to expectations

The first semester was characterized by great instability worldwide. Furthermore, In Switzerland, the drop in bcn: robust semi -annual results interest rates continued in a context of economic slowdown. Nevertheless, This situation has strengthened the expected contraction of the margin of interest, the main source of income for the BCN. However. a strong commercial activity in the mortgage field and in the activities related to wealth management and the placement council made it possible to carry out an operational result greater than the projections.

With

Over the first six months of the year, the total sum of the balance sheet increases 1.4% to CHF 12.2 billion. The financing activity has been important. since both customer claims and mortgage receivables record net growth which is generally rising to CHF 259.7 million or 2.8%. On the liabilities, the increase in CHF 502.6 million or 7.6% of the volume of customer deposits. including cash regards, made it possible to finance this growth and reduce commitments to banks.

Income statement

Successive reductions bcn: robust semi -annual results in the franc guiding rates negatively impact the gross result of interest operations which. records a decline in 3.5 million or 5.5% compared to the first half of 2024. The increase in credit volumes made it possible to contain this drop.

The increase in value corrections for risk of failure. loss linked to interest operations, in connection with certain files for which the risk of insolvency has increased, more the net profit of interest operations ( – CHF 9.1 million or -13.3%). knowing that a clear dissolution of values corrections had been recorded over the same period of last year, resulting in a major basic effect.

The result of commission operations and service services records an increase of 2.3% or CHF 0.4 million. The financial markets having recorded a globally stable performance. it is indeed a significant increase in the wealth consultancy and management activity which makes it possible to bcn: robust semi -annual results achieve this result. It should be noted that the commissions on other services are generally stable.

Trade operations had benefited from market circumstances particularly favorable to the first half of 2024. They then normalized. Over the first six months of the year, activities made it possible to achieve a 6.0 million CHF result, down 17.5%.

The other ordinary results accuse a slight withdrawal. the financial fixed assets having recorded a lower performance this year than the previous one for the same period.

Operating expenses are increasing a little slower than expected. Staff costs increased by 4.5% in connection with the increase in staff and other operating expenses by 7.3%, this due to current developments, particularly in IT and digital services. The depreciation increases slightly to establish itself at CHF 3.9 million.

Operating result and semi -annual profit

After two record years, the operating profit normalized by establishing itself at bcn: robust semi -annual results CHF 39.0 million, slightly above expectations made at the start of the financial year. After allocation of CHF 15.0 million to reserves for general banking risks, semi -annual profit amounts to CHF 24.1 million, down 10.2%.

Perspectives

In the short term, guiding rates should remain stable at a low level. The pressure on the margin of interest should therefore continue. This phenomenon was already partially present during the second half of 2024. so that the difference between the two periods should be lower than what was observed during the first six months of the year.

On the cyclical level. the introduction of very high customs duties for the main export market in the canton is added to an economic slowdown already present for many months. This could generate the risk of failure negatively impacting the annual result.