The Swiss banking subsidiary of insurer Baloise was hit by one-off items in the past year. In its core business, however, signs are pointing to growth.
Baloise Bank Soba's net profit in 2020 slumped by a quarter to 18.5 million Swiss francs ($19.6 million), according to a statement issued by the institute on Tuesday.
However, as already was announced at the presentation of the half-year figures, the decline is due to one-off items and investments. Operationally, Soba noted, the result would have been at the previous year's level.
The Effect of the Pandemic
Despite the Corona crisis, the institute was able to grow its business overall. Soba granted 4 percent more mortgages than in the previous year, and the investment and securities business expanded in size. The strategic bancassurance model of insurance and banking has thus proven its worth, Baloise concluded.
In its home market, however, the Basel-based insurance group struggled. The premium volume of Baloise Switzerland declined by 16 percent. In the non-life business, the effects of the pandemic made themselves felt, while the life business was lower compared to special effects in the previous year. Baloise Switzerland's pretax profit decreased by 23 percent to 500 million francs.
Group Contribution
Nevertheless, the Swiss business unit contributed 386.3 million francs to the group's pretax profit for 2020.
