Swiss regional banking group Valiant increased its income and profit in the first half of 2023 and sees itself on track with its 2024 strategy and geographic expansion.
The regional bank Valiant reports a consolidated profit of 67.2 million Swiss francs ($77.9) for the first half of 2023 corresponding to an increase of 8.4 percent from the same period last year. Operating income increased by 19.9 percent to 266.1 million francs, and operating profit rose by 38.3 percent to 104.8 million francs.
In particular, the interest business and income from trading operations contributed to the half-year results released on Thursday.
Significant Increase in Interest Business
In the interest business, gross income increased by 18.3 percent, and net income of 195.4 million francs was 16.8 percent higher than the previous year. The positive result was mainly due to the rise in interest rates and active balance sheet structure management.
Net income from commission and service fee activities rose by 9.8 percent to 40.1 million francs, mainly due to a change in accounting practice in the payment card business and adjustments to various commissions. Commission income from the securities and investment business declined slightly by 0.8 percent to 24.8 million francs compared to the same period last year.
Higher Income Expected
Income from trading operations increased by 11.7 million francs or 139.1 percent to 20.1 million francs, attributable to renewed higher income from forward exchange transactions.
The bank considers itself to be on track with the implementation of Strategy 2024. With the program to increase profitability, it aims to reduce costs by around 12 to 15 million francs annually starting in 2024. Geographical expansion is also progressing according to plan. As part of its expansion strategy, Valiant plans to open 14 additional branches between 2020 and 2024.
In its outlook, Valiant expects a higher net profit for the current year.
