St Galler Kantonalbank (SGKN) investor relations material

Executive summary

• Net profit increased by 5.1% year-over-year to CHF 119.9 million in H1 2026, reflecting continued business momentum and steady growth across all customer groups and regions.

• Total business volume rose 4.4% to CHF 111.3 billion, supported by strong net new money, loan growth, and contributions from all customer groups and regions.

• CHF 2.1 billion in net new money was acquired, mainly from institutional and private clients.

• Customer loans grew 1.4% to CHF 35.2 billion, mainly from new mortgages in St. Gallen and Appenzell Ausserrhoden.

• The business model continues to prove resilient, with stable growth across core segments.

Financial highlights

• Operating income rose 4.0% year-over-year to CHF 313.9 million in H1 2026.

• Operating expenses increased 4.1% to CHF 166.3 million, mainly due to a 6.5% rise in personnel costs.

• Assets under management climbed 5.9% to CHF 76.0 billion as of June 2026.

• Commission and service income rose 7.5%, while trading income declined 2.9% year-over-year.

• Balance sheet total rose 3.4% to CHF 49.8 billion since December 2025.

Outlook and guidance

• Full-year 2026 net profit is expected to slightly exceed the previous year, assuming stable interest rates, positive equity markets, and no recession in Switzerland.

• Industrial sector remains challenging, while domestic economy and construction sector are stable and positive.

• Interest rates expected to remain sideways; equity markets remain positive.