In the first half, the net profit of the Cantonal Bank of Friborg fell by 0.5% to 72.5 million.
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The Banque cantonale de Friborg (BCF) suffered during the first six months of the year from a contraction in revenue caused by the coronavirus crisis. The bank’s profitability suffered, but net profit remained stable thanks to a sharply reduced tax burden.
The core business of the BCF, interest transactions have made it possible to maintain net income, despite an increase in value adjustments intended to cover customer default. The proceeds of this activity lost 0.3% over one year to 115.7 million francs, the bank said on Thursday.
The cantonal establishment recalls having participated in the program to support the economy of the Confederation, but does not provide any figures relating to COVID credits granted to companies. Over the first six months of the year, customer receivables swelled 4.9% to 3.27 billion francs.
The largest drop can be attributed to trading activities, whose revenues plunged by a quarter (-26%) year on year to 3.8 million francs. The fall is attributable to the slowdown in foreign exchange transactions resulting from the decline in tourism activities. Income from management activities remained stable at 15.4 million.
Operating income fell 1.6% to 137.3 million francs. At the same time, charges grew overweight (+ 4.1% to 49.6 million). The BCF says, however, that this increase was budgeted, without giving further details.
As a result, operating profit fell 7.6% to 81.4 million francs. This contraction eased the bank’s tax burden, which generated half-year net profit of 72.5 million (-0.5%).
Between January and June, the balance sheet amounted 7.8% to 26.56 billion, including 16.72 billion (+ 2.9%) in mortgage loans and 15.19 billion in customer deposits.
In its press release, the cantonal establishment underlines that the uncertainties linked to the health crisis and its impact on the economy could have repercussions on the results of the second half of the year. No quantified forecast is provided.
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