Berner Kantonalbank (BEKN) investor relations material

Executive summary

• Achieved a net profit of CHF 175.4 million for 2025, demonstrating financial strength and stability despite a persistently low interest rate environment.

• Commission and service business grew significantly, offsetting a marked decline in net interest income.

• Maintained strong demand for financing and banking services, with positive business volume development.

• Strategic investments in staff, processes, and digitalization reinforced stability and reliability for clients.

• The bank's share price rose, reflecting market confidence and a 31.7% surge amid global uncertainties.

Financial highlights

• Net interest income declined by 4.0% year-over-year to CHF 376.7 million due to margin compression.

• Commission and service income increased by 9.5% to CHF 126.0 million, driven by strong growth in securities and investment business.

• Net profit decreased by 2.9% to CHF 175.4 million compared to the previous year.

• Total assets grew by 6.1% to CHF 42,977 million; customer loans rose by 4.6% to CHF 31,944 million, with mortgage loans up 6.2%.

• Assets under custody increased by 12.6% to CHF 22,971 million, and assets under management rose 5.8% to CHF 45.3 billion.

Outlook and guidance

• Focus remains on strengthening the earnings base, especially in investment, commission, and service business, with further diversification of income streams.

• No return to negative interest rates expected; margin pressure in interest business to persist.

• Continued positive growth anticipated in commission and service business.

• Ongoing investments in customer-centricity, employee skills, and secure, modern infrastructure.

• Plans targeted cost reductions and process optimizations to strengthen market position.