Bank Cler, which used to be known as Bank Coop, has had a substantially lower first-half profit due to the costly repositioning and rebranding effort. And the effect will be felt throughout this year.
Bank Cler has had a turbulent first half of 2017. The company in Spring announced its rebranding from Bank Coop to Bank Cler and launched a broad marketing initiative to accompany the change. CEO Urs Ackermann presented himself as the man driving the new business.
Not for long though. Shortly after the relaunch, CEO Ackermann departed and was replaced by Sandra Lienhart as new CEO. She took charge of a rebranded company that faced the task of digitization and of broadening its reach by opening new high-street branches.
Growth of Core Business Activities
This all costs a lot of money. As a consequence, the bank has seen its first-half profit decline to 18.8 million Swiss francs, from 22.7 million a year ago, Bank Cler reported today. Operating expenses increased 14.7 percent to 95.2 million.
The bank’s core business of mortgages and client assets increased, with earnings expanding 2 percent to 123.3 million francs.
The bank announced that its repositioning will affect full-year earnings.
