St Galler Kantonalbank (SGKN) H2 2024 earnings summary

Executive summary

• Group net profit rose 3.8% to CHF 215.1 million for 2024, driven by strong business volume growth of 8.1%.

• Dividend of CHF 19 per share proposed, representing a payout ratio of 53% of group profit.

• The bank's strategy was confirmed by the majority owner, the Canton of St. Gallen, and the reporting was transitioned to digital only.

• First-time publication of a climate report, addressing regulatory transparency requirements.

Financial highlights

• Group net profit increased to CHF 215.1 million (+3.8% year-over-year).

• Business volume grew by 8.1%, with customer loans up 5.0% to CHF 33.8 billion and customer deposits up 10.0% to CHF 30.6 billion.

• Net interest income fell 10.4% to CHF 332.1 million due to higher deposit costs and lower interest margins.

• Commission and service income rose 11.4% to CHF 175.9 million, reflecting strong market performance and higher mandates.

• Trading income increased 6.0% to CHF 45.2 million.

• Cost/income ratio at 52.2% (previous year: 49.7%).

• Return on equity after tax stable at 7.6%.

• Total assets rose 10.3% to CHF 45.6 billion.

Outlook and guidance

• For 2025, the bank expects results in line with the previous year, but notes high uncertainty regarding interest rate developments.

• Regional economic growth is expected to remain positive, with continued robust private consumption.

• The bank will continue to focus on sustainable growth, digitalization, and climate-related transparency.