St.Galler Kantonalbank: Healthy growth, profit slightly lower

17.August 2022
ad hoc announcement pursuant to Art. 53 LR

The St.Galler Kantonalbank enjoys an undiminished high trust from the client base and grows further in its core markets. Market-driven valuation adjustments affect the consolidated profit which is CHF 2.8 million (-3.0 %) slightly below the excellent previous year.

Healthy growth

The loans to clients increase by 3.3 % to CHF 29.5 billion, particularly due to new mortgage contracts (+3.7 %) by private customers and real estate investors. In the investment business, net new money of CHF 850.5 million was acquired, which is equivalent to an annualized growth rate of 3.0%. Particularly in the client groups «private customers Switzerland», «institutional investors» and «external asset managers», St.Galler Kantonalbank registers an ongoing strong growth. The assets under management decrease by 6.6 %, affected by the negative development of the markets.

Profit slightly below previous year

The consolidated profit of CHF 91.2 million is CHF 2.8 million lower (-3.0 %) than in the first semester of the previous year. When combined, the two main revenue pillars, commission and service business (+5.1 %) and the net result from interest operations (-2.4 %) are slightly positive whilst market-driven valuation adjustments reduce the result from trading activities (-15.8 %) and the other result from ordinary activities (-85.9 %). The operating expenses increase as expected (+1.2 %) due to slightly higher personnel expenses.

Economy of Eastern Switzerland robust, but with uncertain outlook

Last semester, Eastern Switzerland enterprises have benefited from full order books. The «Ostschweizer Konjunkturboard», which consists of experts from SGKB and the regional chamber of commerce, expects the business development to cool down, especially in the industrial sector. Further rising prices as well as the ongoing supply bottlenecks lead to higher costs and lower margins. The tough geopolitical situation increases the uncertainty in terms of the energy supply. The shortage of workers and professionals has further accentuated in many sectors.

The credit portfolio of the St.Galler Kantonalbank is still in a very good condition. No increased risks are identified. In the valuation adjustments and provisions from the credit business, compared to the previous year, a positive impact of CHF 3.9 million net results.

Outlook results 2022

Based on the uncertain geopolitical and economic situation, St.Galler Kantonalbank adjusts its expectation for the business year 2022 and assumes a consolidated profit below the previous year, but with a constant dividend.

In CHF million 1st semester 2022 1st semester 2021 change
Operating income 245.9 253.2 - 2.9 %
Operating result 106.9 109.0 - 1.9 %
Consolidated profit 91.2 93.6 - 3.0 %

In CHF million June 30, 2022 Dec. 31, 2021 change
Balance sheet total 40'412 39'851 + 2.1 %
Total loans to clients 29'460 28'517 + 3.3 %
Managed assets¹ 52'141 55'813 - 6.6 %
Shareholders' equity 2'674 2'684 - 0.4 %
Full-time equivalents
(average balance)
+ 0.4 %
- 0.1 %


¹) Managed assets = Client funds (Due to clients in savings and deposits, other due to clients, medium-term notes) and assets under management. Not included are custody assets (=assets that are held solely for transaction and storage purposes and for which the Bank offers no advice to the clients).

The interim financial statements according to the Financial Reporting Regulation FINMA, detailed financial data as well as video footage for use can be found here: 
Shareholder letter:

Media contact

Jolanda Meyer
Head of Media Relations
+41 71 231 32 18

Contact for investors and analysts

Adrian Kunz
Corporate Communications
+41 71 231 32 04