Glarner Kantonalbank, the regional bank owned by the canton of Glarus, increased its 2015 profit by almost a third on interest income. It plans to raise its dividend.
Glarner Kantonalbank, which is based in one of the smallest cantons of Switzerland, looks back on a great 2015: Profit rose 28 percent to 20 million Swiss francs. The success was achieved mainly thanks to an increase in revenue from interest payed by borrowers as well as trading.
The bank had 359 million francs more in mortgages outstanding at the end of last year, an increase of 10 percent. It made 4 million francs more profit with this business. The bank sells half of all new mortgages online.
Ongoing Expansion
Glarner Kantonalbank also earned 1.1 million francs more from trading, while commissions yielded half a million less than in 2014.
The institute has grabbed the headlines due to the expansion of its online banking. It employed 205 people at the end of 2015. Operating expenses have risen 9 percent, partly because of the continued push to sell more products over the internet, partly because of the tightened regulation in Switzerland.
The bank proposes to pay a dividend of 0.7 francs a share, compared with 0.6 francs a year earlier.
