Consolidated profit came to CHF 71.3 million in the first half of the year, equivalent to an increase of 6.0% over the previous year. Operating income was up 3.9%, rising to CHF 276.5 million. Valiant’s operating result increased 11.4% to CHF 116.8 million.
“I am delighted by the successful results in the first half of 2024. Despite the changes in the interest rate environment in the last few months, we were able to repeat and even exceed the previous year’s strong figures. This also encourages us in regard to the upcoming 2025-2029 strategy period. Looking ahead over the next five years, we want to become even simpler and more efficient,” says Valiant CEO Ewald Burgener.
Interest operations stable
At CHF 204.1 million (-0.5%), the gross result from interest operations was stable. The net result from interest operations rose by 0.3% to CHF 196.0 million. The substantial 66.8% increase in interest expense to CHF 149.1 million is due to the changed interest rate environment and the fact that Valiant had left the interest paid on deposits unchanged as at the end of June 2024.
Commission business and services
The result from commission business and services reached CHF 44.4 million, a rise of 10.6% over the previous year. Commission income from securities trading and investment activities climbed 9.2%, spurred in particular by the pleasing growth in customer assets invested. Other service business increased by 10.2% due to higher income from various commission transactions.
Result from trading activities and other result from ordinary activities
The result from trading activities climbed CHF 6.4 million (+31.6%) to CHF 26.5 million, reflecting a further increase in income from forward foreign exchange contracts. The decline of CHF 0.8 million (-8.1%) in other result from ordinary activities is particularly due to the lower income from participations.
Operating expenses
Operating expenses fell 1.1% to CHF 149.1 million. This decline primarily reflects the once-only accounting effects arising in the previous year due to a non-recurring contribution made to the employee pension fund. Valiant pursues strict cost management and is continuing to closely monitor cost developments.
Reserves for general banking risks strengthened
As a result of the positive operating result, Valiant increased the reserves for general banking risks by CHF 24.0 million in the first half of 2024. In accordance with the accounting rules for Swiss banks, reserves for general banking risks are classified in full as an element of equity capital. This strengthened Valiant’s equity capital and raised the capital ratio to 16.1%, well above regulatory requirements. Valiant firmly believes that a strong capital base is in clients’ interests as well as that of investors.
Customer loans and deposits
Loans to customers rose 1.5% over the previous year, reaching a figure of CHF 30.1 billion. This growth was underpinned by the new branches opened under the expansion strategy as well as the existing ones. Customer deposits increased 0.6% in the first half to CHF 22.4 billion.
Strategy 2020-2024
Valiant has achieved most of its goals set for the current strategy period and completed the geographic expansion from Lake Geneva to Lake Constance. The 14 new branches have been opened and supplement Valiant’s branch network. The addition of 170 full-time positions, including 140 in customer advisory services, will be achieved in the second half of 2024. The bank aims to increase profitability and continue growth with the future strategy 2025–2029. More information on the Valiant 2029 strategy can be found in the media release of 13 June 2024.
Valiant as a responsible training institution
Valiant is committed to employee training and further education. We educate around 35 trainees in three professions each year and offer secondary school leavers the possibility of doing an internship. This year, all trainees once again successfully passed their final examinations. Even after they have completed their training, we want to offer these young adults a successful entry into the world of work. The trainee retention rate of roughly 80% impressively testifies to the benefits of the lilac corporate culture.
Outlook
Valiant expects consolidated profit to be higher in the current year.
Key balance sheet figures
30/06/2024 in CHF millions | 31/12/2023 in CHF millions | Change as % | |
---|---|---|---|
Total assets | 36,347 | 36,080 | 0.7 |
Loans to customers - of which mortgage loans | 30,110 28,605 | 29,677 28,200 | 1.5 1.4 |
Customer deposits | 22,365 | 22,220 | 0.6 |
Key income statement figures
30/06/2024 in CHF thousands | 30/06/2023 in CHF thousands | Change as % | |
---|---|---|---|
Gross result from interest operations | 204,061 | 205,131 | -0.5 |
Result from commission business and services | 44,385 | 40,144 | 10.6 |
Result from trading activities | 26,495 | 20,134 | 31.6 |
Other result from ordinary activities | 9,563 | 10,407 | -8.1 |
Operating income | 276,481 | 266,064 | 3.9 |
Operating expenses | 149,144 | 150,795 | -1.1 |
Operating result | 116,752 | 104,800 | 11.4 |
Consolidated profit | 71,259 | 67,240 | 6.0 |
Additional key figures
30/06/2024 | 31/12/2023 | Change | |
---|---|---|---|
Headcount (FTEs) | 1,002.8 | 1,003.3 | 0.0 |
Documents and information on the half-year results are available at: valiant.ch/results
Images can be downloaded here: valiant.ch/downloads