In the first half of the year, the Clientis group banks achieved a group profit after taxes of 31,42 million francs. Compared to the previous year, this represents a decline of 1,8 percent, according to a press release issued on Friday.

The group’s 14 regional banks «held up well despite a persistently challenging interest rate environment and volatile market conditions,» it added.

Lending to customers developed particularly well, rising by 2,1 percent to 12,51 billion francs, with mortgage lending increasing by 2,3 percent to 11,92 billion. Customer deposits also grew, reaching 10,46 billion francs — an increase of 2,7 percent or 279 million.

The balance sheet total rose by 4,2 percent in the first half of the year to 15,38 billion francs.

Lower Interest Income

Gross interest income fell by 1,2 percent year-on-year to 75,4 million francs. The lower gross interest margin of 1,01 percent (previous year: 1,07 percent) reflects the still challenging interest rate environment, the group stated.

The slight decline in net interest income was offset by higher commission and service income, which rose by 7,8 percent to 13,41 million francs.

Investments in Digitalization

Personnel expenses increased by 1,2 percent year-on-year to 33,74 million francs, while operating expenses rose by 1,9 percent to 24,79 million.

The group made targeted investments in digitalization and expanded its digital service platform. These include a modern mobile and e-banking solution, a process-supporting advisory solution, AI-supported document management, and integration with the standardized open-banking interface via SIX.

Implementation of New Capital Requirements

Through digitalization in the lending business, the Clientis banks have created important prerequisites for participating in the SNB liquidity program, management emphasized. In addition, they have been working intensively on implementing the new capital requirements under Basel III Final, which will be applied for the first time as of June 30, 2025.

Equity increased by 1,6 percent to 1,41 billion francs, and the total capital ratio of 20,12 percent at mid-year was well above the regulatory requirement of 12,61 percent, the group stressed.

For the remainder of the year, a challenging market environment is also expected. However, the group is well positioned to continue achieving solid results in the future.