The Clientis Group further strengthened its core business in the past financial year. Mortgage claims of the 14 regional banks rose by 4,7 percent to 12,2 billion francs, while customer deposits increased by 6,6 percent to 10,9 billion francs. As a result, the customer funding ratio rose to 85,2 percent, according to figures published on Thursday.

Group Profit Fell by 5,4 Percent

Despite the challenging market environment, the group slightly increased its operating result by 0,6 percent to 201,5 million francs. The main driver was the investment business, where income rose by 15 percent.

At the bottom line, however, the Clientis Group recorded a profit of 60,3 million francs, which was 5,4 percent lower than in the previous year.

«We are investing specifically in modern technologies and efficient processes in order to position our regional banks successfully and competitively in the future as well,» said Clientis CEO Matthias Liechti.

Clientis-CEO Matthias Liechti. (Image: zVg)

Interest Business Remains Key

The interest business remained the most important source of income, accounting for 76 percent of total earnings. The gross interest margin declined by five basis points to 1,01 percent due to low interest rates, which led to a 0,9 percent decrease in net interest income to 152,3 million francs.

In contrast, the commission and services business developed positively, growing by 7,6 percent to 27,7 million francs. Custody assets increased by 12,3 percent to 3,87 billion francs thanks to new money inflows and stock market performance.

Higher Equity Ratio

In lending, the group remained committed to its conservative risk policy. Customer loans increased by 4,0 percent to 12,7 billion francs, with around 98 percent of loans secured by mortgages or other collateral.

The Clientis Group’s capital base also remains robust. Equity increased by 3,8 percent to 1,439 billion francs. The total capital ratio stands at 20,5 percent, exceeding the regulatory requirement of 12,6 percent.