Berner Kantonalbank (BEKN) H2 2024 earnings summary

Executive summary

• Achieved strong growth in lending, services, and commissions, leveraging a sustainable business model and regional presence.

• Maintained a solid capital base and positive market image, with continued investment in staff and offerings, including creation of around 50 new jobs.

• Successfully navigated market changes through proactive product adaptation and close monitoring of interest rates.

• Recognized for quality in asset management and private banking, with notable awards and increased client assets.

• Advanced sustainability initiatives, including the launch of the "myky" home advisory platform and green mortgage incentives.

Financial highlights

• Net profit increased 3.3% to CHF 180.7 million; total operating income up 3.9% to CHF 553.1 million.

• Net interest income rose 4.2% year-over-year to CHF 392.4 million; commission and service income up 9.7% to CHF 115.1 million.

• Customer loans grew 6.1% to CHF 30.5 billion, with mortgage loans up 5.7% to CHF 28.3 billion.

• Client assets under custody rose 11.1% to CHF 20.4 billion; managed assets increased 4.7% to CHF 42.8 billion, with net new money inflow of CHF 682.4 million.

• Dividend proposed to increase to CHF 10.40 per share, with a payout ratio at 53.7%.

Outlook and guidance

• Expects challenging conditions in 2025 due to geopolitical uncertainty, SNB rate cuts, and economic headwinds.

• Regulatory focus on sustainability, compliance, and sector developments will persist.

• Launching "myky" green mortgages in February 2025 to support sustainability and net-zero goals.

• Continued investment in staff skills, infrastructure, and customer-centric solutions; emphasis on efficiency and cost control.