Valiant, a regional banking group based in Switzerland's capital Bern, managed to increase its profit in 2016 despite adding new jobs and high-street branches. It will also raise the dividend.
Valiant Bank had a profit of 117.5 million Swiss francs last year, up 2.7 percent from a year ago, according to a statement released today.
The bank is particularly happy about having been able to maintain the interest margin and still growing the segment all the while the central bank kept the key repo rate below zero.
Commissions and Trading Income Drop
Commissions and services dropped 7.6 percent to 59.5 million francs, with customers still reluctant to invest their cash. Trading income thus fell 4.4 percent to 11.4 million, the bank said.
Valiant aims to increase its dividend payment to 3.80 francs per share from 3.60 francs, pending the approval by the annual general meeting.
Adding Jobs and Branches
Costs in 2016 rose for the first time in six years. The bank spent some 10 million francs to make Valiant fit for the future. It added 21 full-time-equivalents to its jobs tally. The cost-income-ratio increased to 58.4 percent as a consequence.
Valiant intends to continue its expansion strategy by adding digital services and extending the branch network. It will open up shop in French-speaking Morges in the autumn and has plans for further branches in Nyon and Vevey next year – both cities are also located in French-speaking Switzerland.
Markus Gygax, the company's CEO, expects to achieve a full-year result in line with last year's.
Departure of Veteran Board Member
Valiant also said today that Andreas Huber, a member of the supervisory board, will leave the company at the upcoming AGM. Huber spent 15 years on the board of Valiant. He is also in charge of a branch of Mobiliar, a Swiss insurance company. Valiant won't replace Huber.
