Zuger Kantonalbank's profits soar to CHF 74.7 million

The Zuger Kantonalbank has announced it had a successful year over the course of 2018 with profits amounting to CHF 74.7 million, up by 9.8 per cent when compared with the previous year.

It is as a result of these positive figures, which also include a 3.9 per cent increase in operating profits to CHF108.2 million, that it is expected the board will recommend a 10-per cent increase in dividends to CHF 220.00 per share on the occasion of its AGM on Saturday 4 May. Following the publication of these encouraging results, on Tuesday the price of the bank’s shares soared to their highest level (CHF 6,080) since May of last year.

Client funds in the form of private and savings accounts were also up by 6 per cent, and now amount to CHF 9.7 billion, with managed funds, up by 0.6 per cent on last year, amounting to CHF 11.6 billion.

As Bruno Bonati, the chairman of the bank (in the centre of the photograph) said, discipline with regard to costs, which had remained largely stable, and the significant increase in commission and service business, along with a continual increase in funds entrusted to the bank for management, and not just by clients from Zug but by those from all over Switzerland, had led to this encouraging situation.

Operating expenses at CHF 99 million were only minimally up on last year with staffing costs rising only by 0.2 per cent, the chairman adding how the bank had invested in a new e-banking system and other IT infrastructure over the course of last year, too.

Of interest is that the Swiss Financial Market Supervisory Authority (Finma) recommends banks have their own capital reserves to the tune of 12.3 per cent whereas the Zuger Kantonbank has these to the tune of 18.5 per cent, leading it to be able to exude confidence.

As to mortgage business, of note was that the bank provided the finance for as many as 443 private homes last year, an increase of 5.1 per cent. Looking at the Zug property market, Andreas Janett, the head of finance at the bank (on the right in the photograph) pointed out that, last year, only 0.4 per cent of all flats and houses here were unoccupied, compared with the Swiss average of 2.4 per cent. “Demand for flats remains very high and will remain so,” he confirmed.

The photograph also shows, on the left, the CEO of the bank, Pascal Niquille.  

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