St. Galler Kantonalbank has had a more than solid first half, helped by an increase in loans and net new money. The outlook remains one of uncertainty.
St. Galler Kantonalbank increased net income by 1.4 percent to 83.6 million Swiss francs ($91.4 million) in the first six months of 2020, according to a statement released on Wednesday.
New business helped the bank expand with both loans (up 1.9 percent) and net new money (plus 3.9 percent) contributing to a widening of the business volume by 2.3 billion francs. The bank kept all its branches open during the lockdown and provided its services without any interruption.
Cautious Outlook
St. Galler Kantonalbank considers its risks to be solid, but decided to increase provisions given the high degree of uncertainty in the wider economy.
The management of the bank remains cautious in its outlook for the full year despite the relatively successful first six months, because of the deep recession, low interest rates and financial market volatility. It does not expect the economy to quickly return to the level of before the pandemic, despite a recovery being underway. Domestic consumption, demand from abroad and investments by companies are all subdued, the bank said.
