Bank Linth, a Swiss regional bank, had a smaller profit in 2016 as it earned less and spent more. The dividend however will remain unchanged.
Bank Linth had a profit of 20.1 million Swiss francs in 2016, 1.9 percent less than in 2015, the company said in a statement today. Operating profit declined 17 percent to 21.1 million.
The company was faced with higher costs during its program to refurbish the network of branches. Operating costs increased 6.5 percent to 60 million francs.
Commissions, Fees Decline
Interest income, the biggest contributor to the bank’s earnings, rose 2.9 percent to 61.7 million francs, despite the pressure on margins. Commissions and fee income fell 3.2 percent to 17.4 million.
Total revenue was 87 million francs, down 0.3 percent. The company proposes to pay an unchanged dividend of 8 francs per share.
AuM Increase 5.6 Percent
Bank Linth had loans worth 5.6 billion francs by then end of the year, an increase of 4.3 percent from a year ago. Mortgages were up 4.8 percent to 5.4 billion and net new money was 238 million francs.
The company had assets under management of 6.844 billion francs by the end of 2016, 5.6 percent more than 12 months earlier.
Bank Linth expects market conditions to remain challenging and profit in line with previous years.
