Thurgauer Kantonalbank (TKBP) H2 2025 earnings summary

Executive summary

• Achieved record annual profit of CHF 162.3 million, up 2.7% year-over-year, with a 5.1% increase in operating profit to CHF 230 million.

• Dividend per participation certificate increased by CHF 0.20 to CHF 3.60, with a payout ratio of 43.6%; profit distribution to the canton increased by CHF 3 million.

• Strong capital position with a capital ratio of 21%, well above regulatory requirements.

• Customer base expanded by 5,500 net new clients; customer loans grew by 1.4% to CHF 27.4 billion; customer assets reached CHF 28.7 billion.

• Cost-income ratio improved to 44.4%, reflecting high operational efficiency.

Financial highlights

• Net interest income rose by 2.3% to CHF 307.6 million; operating income increased by 4.5% to CHF 439.1 million.

• Commission and service income increased by 8.6% to CHF 87.2 million; trading income stable at CHF 45.3 million (+0.8%).

• Total assets grew by 1.7% to CHF 36.04 billion; customer deposits up 1.7% to CHF 19.39 billion.

• Net new money inflow of CHF 944 million (+160.1%), representing 3.5% of managed assets.

• Operating expenses increased by 2.7% to CHF 197.7 million, mainly due to strategic initiatives and higher staff levels.

Outlook and guidance

• Expectation of a challenging interest rate environment and volatile financial markets in 2026; lower operating profit and net profit anticipated.

• Continued focus on digitalization, hybrid banking, and strengthening private banking; corporate strategy under review.

• No reduction in workforce; organizational changes to be implemented at the start of 2026.