Zug,28.01.2015

Zuger Kantonalbank records profits of CHF 61.2 million in 2014

The Zuger Kantonalbank (ZGKB) has recorded profits of CHF 61.2 million for 2014, the same as in the previous year.
 
Over the course of 2014, the bank made amendments to the financing of its pension funds, which led to a reduction of one fifth in its gross profit. However, thanks to liquidation of other funds, it still managed to match the level of profits for 2013.
 
As the bank announced on Tuesday, it will be issuing a CHF 175 dividend on each share.
 
In its core business of interest-related operations, the bank raised CHF 155.1 million, the equivalent to a rise of 0.4%.
 
Receipts of CHF 39 million in the commission and service business sectors were down by 6% to CHF 39 million, due in part to a quiet period in commercial transactions.
 
As to mortgages, the bank was pleased to announce this area of business had risen by 4.4%.
 
Last month the Swiss National Bank introduced negative interest rates but the ZGKB has let it be known that it is not affected by this. However, negative Libor (London Interbank Offered Rate) interest rates will have a negative effect on net interest income in 2015.
 
The bank added it was continuing to participate in a United States Department of Justice programme aimed at settling fiscal disputes and that this was proceeding as per schedule. The ZGKB was actually listed in the "Category Two" section of the ongoing US tax programme. No news was forthcoming about when it might be completed, however.