Strong half-year result for Bank WIR

Bank WIR presents a good result for the first half of 2021. Thus, the profit could be increased: It amounts to around 11 million francs compared to 10.5 million francs in the previous year. There was also a 6.3 percent increase in mortgage loans. They amount to over 4.1 billion francs. Total assets amount to 5.87 billion francs, which is 2.9 percent more than in the same period last year. According to CEO Bruno Stiegeler, the growth on the credit side came about despite a very conservative financing policy. "We continue to reduce risks and pursue a prudent provisioning and value adjustment policy," he commented. Bank WIR is also growing customer deposits by 3.0 percent to CHF 4.2 billion/CHW, according to its 2021 half-year results.

Gain on marketable securities

Bank WIR's capital base also far exceeds regulatory requirements, the financial institution further announces. Measured against the capital adequacy requirements under Basel III, the BIS ratio as of June 30 is 16 percent (regulatory target: 11.2 percent), and the leverage ratio is 8.1 percent (regulatory target: 3 percent). This security and stability is also reflected in the confidence of capital providers, the statement added. The ordinary share of Bank WIR has increased by 26 francs or 6.5 percent since the beginning of the year (plus dividend distribution of 10.25 francs). The previous year's performance of 8.4 percent was already impressive.

As the markets have developed favorably, Bank WIR's trading result is also positive. Following a loss in the same period last year, the financial institution posted a profit of CHF 9.8 million as of mid-2021. "We traditionally and deliberately invest part of our rock-solid base of own funds in securities that are broadly diversified in all respects - naturally with a clear focus on first-class Swiss securities," explains Mathias Thurneysen, CFO of Bank WIR.

Hardly any impact of Covid crisis on half-year results

The operating result is characterized by a strong interest business. Gross interest income increased by CHF 1.7 million to CHF 33.5 million (+5.5 percent). "In an interest rate environment that remains difficult, it was possible to maintain the margin and expand income," CEO Stiegeler said with satisfaction. Income from commission business with the complementary currency WIR decreased by 1 million francs. There is a good reason for this: "Against the background of the Covid crisis and the associated lockdown, which hit quite a number of sectors with full force, we deliberately calculated one-off reductions in income. In the course of the business-friendly, very successful #zusammenstark campaign for WIR additional sales, we waived half of the network contribution for six months," explains Stiegeler. "This substantial amount has directly benefited SMEs."

On the road to success with digitization

Bank WIR continues to go on the offensive in terms of digitalization. Already in 2017, the first fully digital securities pension solution was launched (VIAC). This is on track for success: VIAC currently has around 51,000 customers (previous year: 28,000) with assets under management of around CHF 1.4 billion (previous year: CHF 500 million). In the first six months of this year alone, according to Bank WIR, a further 10,000 customers with more than 500 million francs in assets under management have been added. "This rapid growth is having a lasting impact on Bank WIR's earnings," says Stiegeler, who holds out the prospect of another innovation around VIAC later this year.

Source and further information: Bank WE