St. Galler Kantonalbank is looking back on a successful 2017. The state-bank in the Eastern region of Switzerland boosted profit by 6.8 percent, helped by a healthy investment performance and commission income.
The St. Gallen-based cantonal bank had net income of 156 million Swiss francs last year, compared with 146 million a year earlier, the company said in a statement today.
The report about the successful business year 2017 comes as an ideal kickoff for its jubilee celebrations – the bank turns 150 this year. Shareholders will be happy to hear that the board proposes to increase the ordinary dividend by 1 franc per share plus to distribute a jubilee dividend of 1.50 francs per share. In total, the company intends to pay out 17.50 francs per share.
Brisk Trading Activities
Assets under management increased 11 percent to 42 billion francs. Added to a strong investment performance, this helped the bank to an 11 percent increase in profit from commissions and services (11.5 million francs). The result from trading activities was also healthy, with an increase of 22 percent.
Operating income rose 2.5 percent to 460 million francs. Income from interest operations were slightly up at 302 million francs, which compares with 300.4 million a year earlier.
Digitization Investments
Expenses were also higher last year, adding 5.3 percent to 13 million francs. Part of the increase is attributable to investments in the digitization of the company as well as to 39 projects launched for the bank’s 150-year-jubilee.
