Helped by a robust economy in its home Canton, the Geneva Cantonal Bank achieved a record first-half profit. Assets under management grew.
The Geneve Cantonal Bank (BCGE) reported a record first-half profit of 116.9 million Swiss francs ($133.7) million in the first quarter, helped by the local economy, according to results released Tuesday.
Assessing the outlook for the rest of the year, BCGE said «Barring a deterioration in the economic situation and taking into account current business developments, the Bank expects overall earnings for the year to increase.»
Assets under Management
Overall assets under management (AuM) increased by 4.6 percent to 34.9 billion francs from 33.4 billion. Private clients accounted for 19.7 billion of that amount, which was an increase of 904 million francs. Among institutional clients, AuM surpassed 15 billion, having gained 4.2 percent.
Less Capital Intensive
BCGE said it's continuing to develop less capital-intensive businesses which include private and institutional asset management and corporate advisory services, and offer a broader range of corporate services with equity financing and M&A.
It sees interest rates increasing moderately and the economic situation improving which will weigh on interest margin, but increase commission income.
The Local Economy
BCGE said that because of its strategic position in the region, it was able to capture the «dynamism» of Geneva's economy, both domestically and internationally. It granted loans of 18.8 billion francs to companies and individuals and added just over 450 companies to its roster of businesses. It increased mortgage lending by 2 percent, with the share of mortgage loans on its balance sheet of 44 percent.
It expanded its staff to 887 full-time equivalents in the first half from 874 during the same period a year ago.
