Migros Bank increases profit by 30 percent in 2023
Published: Tuesday, Jan 23rd 2024, 12:10
Updated At: Tuesday, Jan 23rd 2024, 12:11
Back to Live Feed
Migros Bank earned significantly more last year. It benefited from the sharp rise in interest rates.
Income rose by 18 percent to 827.8 million francs in the 2023 financial year, as the bank announced on Tuesday. Costs rose less sharply by 6.7 percent to CHF 412.7 million.
The cost/income ratio, which is important for banks, thus improved to 47.3 percent after 53.6 percent in the previous year. As a result, the operating result rose by 31% to CHF 383.0 million.
The bottom line was a 30 percent higher annual profit of CHF 313.4 million.
Customer loans at just under 50 billion
In the important interest business, the bank increased its net income by a quarter to CHF 641.4 million. However, the commission business declined (-14% to 108.7 million), while net income in the trading business increased significantly (+28% to 62.5 million).
Customer loans - including personal loans, leasing and other receivables - increased further to CHF 49.9 billion (+2.2%), with the important mortgage business growing by 1.4%. Migros Bank's customer deposits remained more or less stable (+0.4% to 44.7 billion).
Not least thanks to the continued growth of the Cumulus credit card business, the subsidiary of the retail group now has 1.1 million customers. Migros Bank took over the issuing of the Cumulus card for the parent company in summer 2022 after the partnership between Migros and the previous issuer Cembra expired.
"Well positioned financially"
"The general conditions remain challenging, and not just in terms of geopolitics," it said, looking to the future. Migros Bank is monitoring the development of the "interest rate situation" as well as possible economic risks for consumers and companies.
With a strong equity base and broad roots throughout Switzerland, Migros Bank is strategically and financially well positioned. The company did not provide any further information on its Signa exposure.
Just last week, Migros Bank disclosed that, like other banks, it had an outstanding receivable from a real estate company. The bank has a CHF 97 million stake in a syndicated loan from several Swiss institutions.
Several investors are involved in the creditor - including Austrian entrepreneur René Benko's real estate group Signa.
©Keystone/SDA
English 
German 
French 
Spanish 
Arabic