St Galler Kantonalbank (SGKN) H2 2025 earnings summary

Executive summary

• Consolidated net profit increased 5.5% to CHF 227.0 million year-over-year, with all revenue pillars exceeding prior-year levels.

• Total business volume rose to CHF 106.6 billion, an 8.5% increase, driven by strong investment product performance and net new money of CHF 4.2 billion.

• Significant growth in Global Custody business for Swiss pension funds, with volumes up CHF 1.7 billion.

• Proposed dividend increase to CHF 20 per share, payout ratio at 52.8%.

Financial highlights

• Gross operating income reached CHF 615 million, up 6.4% year-over-year.

• Operating income rose 7.7% to CHF 604.7 million, and gross profit improved by 9.0% to CHF 283.3 million.

• Net new money inflows totaled CHF 4.2 billion (+6.5%), with managed assets up 11.3% to CHF 71.8 billion.

• Net new loans increased by CHF 1.0 billion (+2.9%) to CHF 34.7 billion, mainly from private mortgages.

• Operating expenses rose 6.5% to CHF 321 million, reflecting higher personnel and IT costs.

Outlook and guidance

• Stable growth expected for 2026, with results anticipated at prior-year levels, assuming stable interest rates and no recession in Switzerland.

• Economic environment in Eastern Switzerland remains robust but faces challenges, with little cyclical momentum but no recession expected.

• Interest rates expected to remain low and move sideways; equity markets to stay positive but volatile.