Neue Bank reportspositive development of assets under management

Semi-annual report as at 30 June 2024
In the first half of the 2024 fiscal year, Neue Bank achieved a gratifying inflow of net new funds in the amount of CHF 196.8 million. At the same time, assets under man¬agement reached a record high of just under CHF 6.8 billion. Earnings developed in line with expectations and were lower than in the same period of the previous year. The financial markets performed well in the first half of 2024. The SNB’s interest rate cuts, in particular, led to gains in foreign currencies – especially the US dollar and euro – against the Swiss franc. Combined with strong stock market performance, this had a positive impact on assets under management.

Gratifying increase in net new funds and assets under management
The inflow of net new funds developed positively in the first half of 2024, amounting to an impressive CHF 196.8 million. At the same time, assets under management increased by around CHF 770 million or 12.8% to CHF 6.8 billion since the end of 2023, reaching a new high.

Income and earnings development
Operating income amounted to CHF 17.1 million, a slight decrease of 3.4% compared to the same period of the previous year. The most significant source of operating income – commission and fee income – increased by 5.5% to CHF 8.4 million, partly due to higher portfolio-depend¬ent income. While net interest income of CHF 5.8 million was 5.7% lower than the previous year’s result due to narrower margins, net income from financial transactions fell by 18.8% to CHF 3.0 million. Due to targeted investments in further optimising processes and increasing efficiency, operating expenses rose by 4.7% to CHF 12.5 million compared to the previous year. Nevertheless, oper¬ating expenses were kept below budget. Overall, this resulted in net profit of CHF 3.7 million, which was 22.4% lower than the profit for the same period of the previous year. Nevertheless, the income situation developed in line with expectations, given that a lower profit than in the previous year had been budgeted for 2024 due to the aforementioned strategic investments.

Excellent capital base
With a Tier 1 ratio of 27.9%, Neue Bank continued to report an above-average and solid capital base that is well above the regulatory requirements and guarantees clients a high level of security and stability.

Good performance of PRIMUS asset management mandates
Neue Bank’s PRIMUS asset management mandates continue to perform well. The sustainable asset management solutions allow investors to consider not only financial but also environmental and social aspects when making investment decisions. For example, the PRIMUS-ETHICS Equities World CHF mandate – based on performance figures as of the end of June 2024 – achieved a year-to-date performance of 28.7%, significantly outperforming the benchmark (19.6%). The strategy is also impressive in a longer-term comparison: Over the past ten years, it has achieved a performance of 156.9%, or 9.9% per year, outperforming the benchmark (total return: 120.8% / 8.2% p.a.). This development demonstrates that incorporating sustainable criteria can positively impact economic success.

Outlook
The global economic and political situation is fraught with imponderables. Although we expect the positive trend to continue overall, the elections in the United States, in particular, could increasingly draw investor attention in the second half of 2024 and lead to increased volatility, at least temporarily. Regarding future business development, we expect to achieve our set targets, assuming the general conditions remain unchanged.