The Cantonal Bank of Geneva (BCGE) unveiled on Tuesday a half-year performance marked by the increase in business volumes, revenues and results.
In Geneva, the Cantonal Bank posted record net profit in the first half of 2022 of 78 million francs, an increase of nearly 22%. Assets managed by BCGE reached 33 billion and customer and mortgage loans amounted to 18.7 billion. Constantly increasing, shareholders’ equity reached 1.86 billion. As for turnover, it increased by more than 12% to reach more than 230 million francs.
A paradox given the war in Ukraine and market uncertainty. The reaction of the Bank’s Managing Director, Blaise Goetschin.
Operating profit increased by 21.3% over one year to 93.7 million.
Effect after Covid
The economic recovery is manifesting itself in Switzerland and internationally, according to the director. For him, the post-Covid period is still unfolding its effects. Blaise Goetschin.
For next year, 1.9% growth is expected against 2.8% this year. The forecasts of the director of the BCGE are rather positive. Inflation is there, but it remains modest, according to the Director General.
On the commission side, the BCGE recorded an increase of 5%, despite the rather turbulent stock markets. The shareholders lost but the bank won. The establishment’s strategy paid off according to Blaise Goetschin.
Mortgage rate
Customer and mortgage loans amounted to 18.7 billion francs and increased by 2.1%. People who have taken out a loan can be reassured, the mortgage rate should not go up, but rather stabilize
Concerning the possible power cuts that are looming this winter, the BCGE says it is far-sighted. Blaise Goetschin.
Equity, increased to 1.87 billion, maintains its growth (+2.3%). The consolidated equity coverage ratio at 16.46% is slightly below that recorded at the end of 2021 (-3 basis points), but still remains above the required standard of 12%.
Operating expenses rose 2.9% to 129 million francs. The banking establishment says that these reflect its investments in new skills and technologies for future growth, the statement said, highlighting the creation of 22 new positions.
The number of private and institutional shareholders has also increased, reaching 15,615 on 30 June, of which 15,230 are private, underlined the BCGE on Tuesday. At the general meeting last May, the shareholders approved by 99.51% a dividend increased by 20% to 4.50 francs for the past financial year.
ATS and Judith Monfrini