Zuger Kantonalbank last year earned about as much as in 2015. Assets under management declined as a consequence of introducing negative rates for some clients.
Zuger Kantonalbank (ZGKB) had an operating profit of 100.5 million Swiss francs in 2016, 6.8 percent more than in 2015, the company said in a statement today. Net income was unchanged at 61.5 million.
The bank, which has 400 employees, posted lower income from commissions, extraordinary costs in relation to its 125th anniversary and an outflow of client assets.
ZGKB proposes to pay an unchanged dividend of 175 francs per share.
Trading Income Rises
Profit from the interest-related business rose 2.5 percent to 154.5 million francs. Commissions and services contributed 35.4 million, 0.4 percent down from a year earlier. Profit from the trading business rose 15 percent to 18 million.
Costs increased 2.5 percent to 99.5 million francs, boosted by outlays in relation to the 125-year-anniversary celebrated this year. The cost-income ratio was almost unchanged at 46.9 percent.
Decline in Client Assets
Client assets declined 3.5 percent to 10.5 billion francs. ZGKB said the development was the result of the conscious and selective introduction of negative rates for some of its clients, leading to an outflow of money.
ZGKB said the economic conditions remained challenging, adding that it expected rates to remain low for a longer period of time. The bank will retain a cautious loans policy.
