BCGE increases its profits despite a drop in its income

Spread the love

The Banque cantonale de Genève (BCGE) published a net profit up 8.4% over the year 2020, to 105 million francs, according to a press release released Tuesday morning. Conversely, its turnover contracted 12.8% to 367 million. A decline explained by the recession due to the coronavirus pandemic and to non-recurring elements, specifies the BCGE, which has made provisions for credit risks. Operating profit fell by 31.5%.

Mortgage business grew 2.8% to exceed the CHF 12 billion mark, while assets under management rose 4.5% to CHF 31.8 billion. The bank, which has a cost / income ratio of 64.7%, plans to distribute a stable dividend compared to the previous year, at 3.75 francs per share.

Operating expenses fell by 2 million, while operating profit fell 31.5%, from 165 to 113 million.

First half in decline

In the first half of 2020, the bank had published an operating profit practically halved to 50.6 million francs. Its turnover fell by 37 million (-17%) to 183.1 million francs, but most of this decrease (27 million) was linked to one-off items: value adjustments on financial assets own funds had a negative impact of 10 million, while BCGE had received a declining dividend from the Swiss Stock Exchange (1.2 million compared to 6.7 million the previous year).

BCGE had made provisions of around fifteen million francs, in connection with its raw materials financing activity. At 55.3 million, net profit was down 6.6%, as the bank had drawn 15 million from its reserves during the first half. The distribution of a dividend for the year 2020 was envisaged, when the half-year figures were presented on August 11, but without further details, due to lack of visibility.

newsoceon.com