NEUE BANK with highest volume in its history

NEUE BANK continued on its growth path in the first half of 2021, achieving a strong increase in assets under management despite the challenging situation. For the first time in its history, the bank achieved record assets under management of CHF 6.5 billion.

The look back on the first half of 2021 continues to be marked by a historic event – the global Covid-19 pandemic. This special situation poses challenges not only for the financial industry. Despite the difficult market environment, NEUE BANK reported gratifying business development. Assets under management developed very positively in the first half of 2021 and exceeded the CHF 6 billion mark for the first time ever in February. Due to the considerable inflow of new net funds in the amount of CHF 266.0 million and the good market development, assets under management increased to CHF 6.5 billion by the end of June, representing a gain of 12.6 % or more than CHF 730.0 million over the end of 2020.

“The results of the first half of 2021 show that the investments made by NEUE BANK, especially in the expansion of client advisory services and digitalisation, are having a positive impact. Also thanks to these investments, the gratifying increase in client volume from the previous year has continued. With a bit of delay, this will also have a positive effect on earnings,” says Pietro Leone, CEO of Neue Bank.

Earnings development exceeds expectations
Last year’s cuts in USD interest rates and the associated aggravation of the low interest rate situation were clearly reflected in earnings development over the first six months of the year. Compared with the same period of the previous year, earnings decreased to CHF 3.8 million. On the other hand, commission and fee income developed very positively, increasing by 8.9 % to CHF 9.1 million. This could not fully compensate lower net interest income (incl. income from securities) in the amount of CHF 2.3 million and financial operations in the amount of CHF 2.8 million, however. Overall, operating income in the amount of CHF 14.2 million was 6.4 % below income in the same period of the previous year. Operating expenses of CHF 9.6 million were below budget and only 1.7 % above the previous year’s expenses, resulting in a gross operating profit of CHF 4.6 million, which slightly exceeded expectations.

Outlook
Despite the continuing economic uncertainty, Neue Bank is well prepared for the challenges ahead and is entering the second half of the year from a position of strength. With an above-average Tier 1 ratio of 38.2 %, it has a capital base that far exceeds the regulatory requirements and industry average, offering clients an exceptionally high level of security and stability.