Banque Cantonale du Jura (BCJ) H2 2024 earnings summary

Executive summary

• Achieved record operational result in 2024, with operating profit up 1.6% to CHF 31.7 million and net profit up 1.8% to CHF 13.5 million, marking the best results in the bank's history.

• Strong business momentum reflected in a CHF 159 million (+5.3%) increase in mortgage loans and a CHF 91 million (+3.6%) rise in client deposits.

• Board proposes a stable dividend of CHF 6.75 million, matching the record from 2023, and strengthens equity by CHF 19.2 million, raising the CET1 ratio to 17.1%.

• Social responsibility initiatives included the launch of JuraEcoPME mortgage and Boost PME program to support sustainable transition for SMEs.

• Outlook for 2025 is cautious, with expected lower results due to anticipated interest rate cuts and economic slowdown, especially in the watchmaking subcontracting sector.

Financial highlights

• Total assets reached CHF 4.4 billion, up CHF 99.2 million from 2023.

• Operating income rose to CHF 73.3 million (+5.1% year-over-year).

• Net interest income increased by 0.6% to CHF 50.7 million, despite a sharp drop in market rates.

• Commission income grew by 8.4% to CHF 10.9 million, and trading income rose by 10.7% to CHF 8.0 million.

• Operating expenses increased by 2.9% to CHF 35.5 million, with personnel costs down 2.6% and other operating costs up 11.2% due to IT and security investments.

• CET1 capital ratio improved to 17.1% from 16.9% at end-2023.

Outlook and guidance

• 2025 is expected to see a decline in results due to likely interest rate reductions and a significant economic slowdown, particularly impacting the regional industrial sector.

• The bank remains committed to supporting the local economy and helping businesses navigate challenging conditions.