Valiant has exceeded its targets despite the pandemic and boosted profit in the third quarter. The core business is what made the difference.
Bern-based Valiant posted a profit of 87.6 million Swiss francs ($96.4 million) in the third quarter, up 1.3 percent from a year earlier, according to a statement from the bank on Thursday. Operating profit increased 2.8 percent to 108.1 million francs.
Income from the interest business, the regional bank’s most important, contributed significantly to the positive third-quarter result. It added 5.3 percent year-on-year.
Loans Are Stacking Up
Valiant increased loans by 3.6 percent to 25.7 billion francs, to which corona-credits added 1.3 percentage points, according to the statement. Assets under management added 9.5 percent to 21 billion francs as of the end of September 2020.
The company reduced the costs for interest through the emission of covered bonds and achieved a net revenue of 235.8 million francs from the interest business, a plus of 2.6 percent.
Steady Expansion Pace
The cost-income-ratio was steady at 57.3 percent, despite the bank’s investment drive and creation of more jobs. Operating costs rose a lower-than-expected 2.6 percent to 179.8 million francs.
The expansion of the regional bank is progressing at a steady pace, with the latest new branch slated to open in Rapperswil in mid-November. Oerlikon and Liestal will follow in the summer of 2021, while further locations are under consideration.
Second-Wave Risk Remains
Valiant expects a stable development of its business through the end of the year and projects a full-year result in line with the year-earlier result.
The bank cannot exclude that the second wave of the pandemic will impact on credit risk.
