On Thursday, DC Bank, which belongs to the Burgergemeinde in Bern, also presented 2024 financial statements. At 6.1 million Swiss francs, operating profit fell slightly short of the previous year's level of 7.1 million francs. However, net profit rose significantly to 4.9 million francs, an increase of 3.3 million francs. This improvement is largely due to 3 million francs not being allocated to banking risk reserves in 2024, unlike in the prior year.

The bank managed relatively well despite the challenging environment in the interest business. Net interest income (after value adjustments and losses) fell from 14.5 million francs to 12.8 million francs. Although interest income increased slightly to 18.4 million francs, interest expenses doubled to 5.9 million francs. Mortgage receivables, by far the largest asset item, increased by 2.3 percent to 955.6 million francs.

Lending Business Temporarily Restricted due to Regulation

However, DC Bank reports that «the lending business had to be restricted at times due to regulatory conditions».

On the liabilities side, customer deposits liabilities also grew. Fixed-term deposits and medium-term notes, in particular, were in high demand and served as a reliable source of refinancing, according to the bank.

Exemplary Cost Discipline

In the commission and services business, income amounted to 5.4 million francs, compared to 5 million francs in 2023. Assets under management rose by 11.2 percent, which corresponds to an increase of 100 million francs. The bank attributes this growth to successful acquisitions and the positive stock market performance.

In contrast to other financial institutions, personnel expenses at DC Bank remained virtually unchanged at 6 million francs. Operating expenses declined significantly, from 5.3 million francs to 4.9 million francs, primarily due to cutbacks in IT and external services.

Burgergemeinde Benefits from Several Channels

Balance sheet growth also remained within reasonable limits, with the total now standing at 1.23 billion francs (1.15 billion).

The total «added value» for the Burgergemeinde Bern as the owner is estimated at 6.4 million francs. In addition to the profit, this includes the taxes paid to the Burgergemeinde (1.2 million francs). Another item is the settlement of the guarantee, which is recognized under operating expenses (0.3 million francs).

Margin Erosion as an Issue for 2025

DC Bank continues to expect a challenging market environment for the current financial year. The interest rate turnaround initiated by the Swiss National Bank presents banks with the task of «countering the resurgence of margin erosion».

For the historic bank, 2025 is a milestone - it can look back on 200 years. It has launched an image campaign for the anniversary year and is planning various activities to celebrate with customers and business partners.