Geneva Cantonal Bank posts slightly lower profit
Published: Thursday, Aug 8th 2024, 08:10
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In the first half of 2024, the Geneva Cantonal Bank (BCGE) fell slightly short of the previous year's record result. In the mortgage market, however, the state-owned institution continued to grow rapidly in the first six months of the year.
At CHF 136.9 million, operating profit as a measure of the operating result for the first six months of the year was 0.3 percent below the result for the same period last year, as BCGE announced on Thursday. The bottom line was a net profit of CHF 116.0 million, 0.7 percent lower than in the previous year.
Higher interest result
The bank was able to further increase its income in the first half of the year. Overall, operating income increased by 3.1% to CHF 299.6 million. This increase was driven by the interest business: with a further increase in lending, net interest income rose by 5.2 percent to CHF 196.6 million. The bank also achieved clear growth in the commission and services business, benefiting from the further increase in assets under management.
However, operating expenses also increased significantly, rising by 5.9 percent to 150.1 million francs. The bank has further expanded its teams and continued to press ahead with investments in the areas of digitalization, security and the energy transition. In total, the banking group created 25 new jobs and currently employs 942 people.
Mortgage growth
The bank continued to increase its lending in the first six months: customer loans rose by a total of 3.5 percent to 19.9 billion Swiss francs. Mortgage loans rose at an above-average rate of 4.3 percent. Meanwhile, the assets managed by the bank increased by 3.8 percent to 36.6 billion. This development was mainly due to discretionary management mandates and investment funds, according to the statement.
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