Interest transactions, the bank’s main source of income, generated a net profit of 118.6 million (-1.9%).
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The Cantonal Bank of Thurgau managed to keep its results almost stable on an annual basis during the first six months of 2020. Even though the effects of the crisis were felt, the mortgage activity and the harvest of new money experienced a favorable development, indicates the establishment of Eastern Switzerland on Tuesday in its interim report.
Operating income fell slightly (-1.4%) to 164.4 million francs. In detail, interest operations, the bank’s main source of income, generated a net profit of 118.6 million (-1.9%). Commissions and services brought in 30.2 million (+ 5.2%) and trading and fair value options activities just over 12.4 million (-5.3%).
Operating expenses swelled 2.4% to 82.1 million francs, due to the 4.2% increase in personnel costs to 53.4 million. The operating result thus shows a decline of 5.1% to 76.1 million and the half-year profit of 2.4% to 70.5 million.
On the balance sheet, customer loans increased by 4.1% compared to the 2019 closing to 21.89 billion francs, including 20.12 billion (+ 2.4%) of mortgage loans. Accounts receivable from customers jumped by nearly a third (+ 29.7%) to 1.8 billion, including nearly 200 million Covid credits, specifies the TKB. The sum of the balance sheet swelled by nearly 8.0% to 27.7 billion.
The assets under management crossed the 20 billion francs mark (+ 0.6%) thanks to the inflow of 611 million new money, against 589 million collected in the first half of 2019.
In view of the uncertain effects of the crisis on economic activity, management prefers to be cautious when it comes to brushing up the outlook, and anticipates a result for the full year that is lower than that of 2019, without more precision.
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