Valiant increased its consolidated net profits for the first half of the year.  The bank also made progress on its regional expansion plans.

Valiant's consolidated net profit came in at 62 million Swiss francs ($64.6 million) in the first half of the year, a gain of 1.3% on the year-earlier period, while operating income was up 5.1 percent to 222 million francs, and operating profit increased by 2.3 percent to 75.8 million francs, the bank announced on Thursday.

Net interest income before valuation adjustments was up 2.3 percent to 173.4 million francs, while at the same time interest expense continued to decline. Value adjustments for credit risk decreased by 8.9 percent to 6.2 million, while net interest income for the period came in at 167.3 million, up 2.8 percent. 

Interest Rate Turnaround

The Swiss National Bank recently raised its policy rate, and in response, Valiant is no longer charging its private and business clients negative interest rates as of July 1 and said it was preparing for higher rates well in advance.

Income from fees and commissions increased 13.3 percent to 36.5 million francs, and commission income from securities trading and investment activities rose 5.4 to 25 million francs, driven in part by higher income from asset management and custody fees, Valiant said.

Strategic Plan 

During the first half, Valiant continued to implement its «Strategy 2024» plan. In February, a sixth strategic aim was added, embarking on a program to increase profitability to generate initial cost savings in 2022 and leading to annual savings between 12 and 15 million from 2024 onwards. It aims to achieve this by introducing cost savings and optimization measures across the company.

Expansion Plans

Valiant's expansion plans are continuing as planned, opening two additional branches with three more planned. Between 2020 and 2024, Valiant will have opened a total of 14 additional branches as part of its expansion strategy, creating 170 full-time equivalent positions, including 140 in client advisory services.

Full Year Result

With its profitable performance through the first half of the year, Valiant expects its full-year net profit for 2022 «to be slightly above the prior-year figure.»

«These strong results show that we are on the right track with our strategy and that our clients continue to trust in us. During this challenging period, we remained focused on providing comprehensive advice and support to our customers,» says CEO Ewald Burgener.