Bank Cler increases business performance in the first half of 2021
Bank Cler increased its operating profit in the first half of 2021 by 6.7% to CHF 35.2 million. This result was made possible by growth in the investment business, lower refinancing costs, the high quality of customer loans and lower operating expenses, according to the company.
Bank Cler reports positive figures for the first half of 2021 and appears to be on track for success overall. According to a statement by this financial services provider, which says that its offering is geared in particular to the needs of private clients, the self-employed and SMEs, a major part of this interim result is due to a successful growth strategy in the investment business. There, the volume of deposits increased by CHF 0.7 billion. The possibility of benefiting from the advantages of professional asset management from as little as CHF 1 in initial capital is in high demand, it says. The volume in Bank Cler's investment solution also increased by a further CHF 239.7 million (+22.6%) to over CHF 1.3 billion. Of this, CHF 528.9 million or around 40.7% is attributable to the sustainable investment solution. In terms of traditional asset management and advisory mandates, Bank Cler reports CHF 0.9 million (+4.2%) higher commission income from securities and investment business compared to the same period last year. Client assets increased by CHF 1.3 billion (+6.1%) to CHF 21.9 billion in the first six months. A net new money inflow of CHF 0.6 billion contributed to this development.
Stable net interest income
As a result of the persistently low interest rates, intense competition and margin pressure in the lending business, interest and discount income declined by CHF 4.9 million (-4.5%) to CHF 104.0 million in the first half of 2021. At the same time, lower refinancing costs as well as the active management of sight balances at the SNB and interest in the deposit business led to a CHF 3.4 million (-17.9%) lower interest expense of CHF 15.6 million. Overall, net interest income of CHF 88.8 million is slightly below the level of the prior-year period (-0.4%).
Bank Cler's risk-conscious lending policy, which has been in place for many years, continues to pay off. Thus, no additional value adjustments or provisions for impaired receivables had to be made in the first half of 2021.
Bank Cler focuses on positive customer experiences
The increase in operating profit by a total of CHF 2.2 million (+6.7%) to CHF 35.2 million allows the formation of reserves and strengthened internal financing. The half-year profit amounts to CHF 20.1 million.
Bank Cler intends to continue its successful course with further investments in the future. For example, the branch network is to be further expanded. The implementation of the new support concept will be successfully completed with the modernization of the customer zone at the headquarters in Basel at the end of 2021. In addition to the branch offices, the focus will be on digital channels and video consulting. Self-service functionalities are being continuously expanded to enable customers to access products and services independently of time and place. With the neobanking app Zak, the number of users of which has increased by a further 9,000 to 44,000 within the space of a year, Bank Cler has already been providing an app for everyday banking services for several years. Onboarding is possible around the clock.
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