Basler Kantonalbank returned stable first-half earnings and now awaits the settlement decision on its dispute with the U.S. tax authorities. Its reserves to meet any fine remain unchanged.
The Basler regional bank expects a ruling on the dispute later this year, and estimates the fine will be in the region of 100 million Swiss francs ($100.7 million), an amount for which it has set aside adequate reserves, the bank said in a statement Thursday. The reserves should also cover the costs of the legal proceedings.
Basler Kantonalbank CEO Guy Lachapelle has already said he expects the dispute with the U.S. Department of Justice to be settled in the course of 2018. U.S. authorities recently imposed a $5 million fine on Neue Privat Bank. NPB, like Basler Kantonalbank, is categorized in a first group of Swiss banks including Pictet being criminally investigated for how they dealt with their wealthy U.S. clients.
Profit Edges Higher
Basler KB said profit in the first six months of year rose 1.6 percent to 49 million francs, while operating income fell 6.1 percent to 89,4 million francs, due to higher allowances.
There was a sharp decline in the trading business, with turnover sliding almost 36 percent to 33.5 million francs. Depot assets saw net new inflows of 213 million francs, it said. The bank expects a similar performance in the second half of the year.
