Business segment result
Interest differential business, which comprises the largest part of earnings in private and corporate banking, posted a very pleasing development. The pressure on margins in deposits and mortgage business was more than compensated for by growth in lending business. The success of new product ranges and intensified client activity were reflected in income from fees and commissions as well as trading income. Operating expenses remained stable in spite of the investments made in the bank branch and distribution network.
The continuing demand for real estate financing led to an risk-aware increase in loans to clients of over 6 percent to CHF 10.3 billion in the Retail & Corporate Banking segment. The business volume rose by 3.6 percent to CHF 18.8 billion. The segment posted inflows from private and corporate clients in the domestic markets of Switzerland and Liechtenstein. Isolated outflows of low-margin deposits adversely impacted net new money.
Download |
in CHF thousands |
2017 |
2016 |
+/− % |
|||
---|---|---|---|---|---|---|
Net interest income |
87'439 |
84'077 |
4.0 |
|||
Credit loss (expense) / recovery |
833 |
−3'014 |
|
|||
Net interest income after credit loss (expense) / recovery |
88'271 |
81'063 |
8.9 |
|||
Net fee and commission income |
30'210 |
29'467 |
2.5 |
|||
Net trading income |
11'441 |
10'532 |
8.6 |
|||
Other income |
1'622 |
1'813 |
−10.5 |
|||
Total operating income |
131'545 |
122'875 |
7.1 |
|||
Personnel expenses |
−29'886 |
−31'679 |
−5.7 |
|||
General and administrative expenses |
−3'544 |
−2'364 |
49.9 |
|||
Depreciation and amortisation |
−40 |
−68 |
−41.2 |
|||
Services (from) / to segments |
−49'117 |
−46'989 |
4.5 |
|||
Total operating expenses |
−82'587 |
−81'100 |
1.8 |
|||
Segment profit before tax |
48'957 |
41'775 |
17.2 |
Download |
|
2017 |
2016 |
||||||
---|---|---|---|---|---|---|---|---|
|
||||||||
Gross margin (in basis points) * |
70.8 |
70.7 |
||||||
Cost-Income-Ratio (in percent) ** |
63.2 |
64.4 |
||||||
Net new money (in CHF millions) |
−100 |
334 |
||||||
Growth of net new money (in percent) |
−1.2 |
4.2 |