The Cantonal Bank of Geneva (BCGE) has seen its revenue weaken in the first half, due to the drop in interest rates. She has strengthened her own funds, but expects a withdrawal result for the rest of the operations.
Reflection of the canton, the establishment of the Quai de l’Ile collects a multiple but valiant feeling of client companies in the face of American customs duties. From January to June, the net profit reached 94.0 million francs, 19% less over one year, said a press release published on Tuesday.
The operating profit dropped from 18.9% to 110.9 million. Operating expenses weighed by 1.2% more to 151.8 million. And the operating product was reduced from 7.7% to 276.5 million.
At the end of June, assets under management reached 37.1 billion, up 0.4%. Funding to businesses and individuals approached 21.1 billion, or 2.7% more.
The bank displayed at the end of June a 33.9 billion assessment, up 4.5%. The hard equity ratio (TIER1) has advanced 3 base points, at 15.92% compared to the end of December.
For 2025, the management expects a result “set back compared to 2024, linked to interest rates and a weakened economic situation”, and more generally to a degradation of growth with a gross domestic product (GDP) to 1.2% with repercussions on the unemployment rate.
Diversified income, unique model
The net profit for interest operations melted by 16.6% to 164 million, while that of the commissions advanced from 6.1% to 77 million, and that of trading from 5.5% to 21 million. “The commercial activity partially compensated for the crumbling of the margin of interest,” highlights the bank. Also, the share of turnover in foreign currencies (in euros and dollars (USD)), represents 26.1% of the total. In detail, the contribution of the capital transmission and dimension subsidiaries was withdrawn, while that of Mont-Fort Funds, was up.
The fault of low interest rates was a common trend in cantonal banks, but it is difficult to compare them, according to the financial director Frédéric Vernet. The deposit and that of credit part are balanced, unlike other establishments. “Also, the share deposited at the Swiss National Bank (BNS) is very important in comparison, and therefore very exposed.”
In addition to investments in digitization, the many regulatory changes required continuous investments. “The charges have been under control, and the cost of risk advanced in view of the context,” said Vernet.
The bank reimbursed its 2019 AT 1 loan in the amount of 135 million francs on May 12. And, it contracted a loan labeled in euros, the first in its history, with a volume of 500 million.
Customs reader of companies
Faced with customs customs from across the Atlantic, BCGE client companies readjust their sails according to their American exhibition. “Since August 4, we have contacted a large sample of our customers, small, average and large.
“Their feeling is multiple. Some have supply chains in Europe and the United States, and thus swing according to a high-speed adjustment exercise”, others are more strongly exposed and require a more drastic readjustment such as the sectors of metallurgy, machine or microplastics of watchmaking.
According to him, the question for these companies is to know how unique they are compared to German or Mexican competitors for example, and what part of turnover represents the United States.
Around 1:00 p.m., the title BCGE fell 0.4% to 244 francs in an SPI up 0.5%.
This article was published automatically. Sources: ATS / AWP
