Neue Bank reports successful first half of fiscal year

Neue Bank can look back on a successful first half of the 2023 fiscal year. Alongside positive earnings development, it continued on its growth path with a gratifying volume of net new money.

The business environment was significantly more positive during the reporting period than in the first half of 2022. The first six months of the current year were characterised by a further rise in interest rates and a stabilisation of the financial markets.

Positive earnings and profit development

In this environment, Neue Bank generated a profit of CHF 4.8 million in the first half of 2023, 4.0% above the result of the same period of the previous year. Operating income increased by 12.0% to CHF 17.7 million, even though operating income in the previous year had already benefited from a special effect of CHF 1.9 million. Excluding this special effect, operating income even increased by 27.0%. Thanks to the improved interest rate environment, the main contributors to the growth in operating income were net interest income in the amount of CHF 6.1 million (+128.8%) and income from financial operations in the amount of CHF 3.7 million (+63.3%). The trading and investment activities of clients were somewhat more restrained than in the previous year, so that commission and fee income declined to CHF 7.9 million. Operating expenses increased in line with the budget to CHF 11.9 million, due in particular to higher expenses relating to strategy implementation.

Gratifying development of net new money

The development of net new money was especially gratifying, amounting to a remarkable CHF 239.1 million in the first half of 2023. Assets under management increased by 6.9% from CHF 5.8 billion at the end of 2022 to CHF 6.2 billion at the end of June 2023.

Outlook

Neue Bank is one of the best-capitalised banks in the industry (Tier 1 ratio of 28.5%), offering its clients a capital base that stands for high security and stability. The future development of the global economy is subject to many uncertainties. Nevertheless, the management of Neue Bank is confident about further business development in 2023.