Good Half-Year Result 2021 of NKB

The current framework conditions with the COVID-19 pandemic and the ongoing margin pressure in the interest business remain challenging. All the more remarkable is that NKB was able to increase its business success in the first half of 2021 to CHF 14.7 million. After provisions for general banking risks, a net profit of CHF 6.9 million (+ 2.2 percent) was achieved.

Positive development in the core business

The good half-year result was shaped by various factors in the core business. On the one hand, NKB succeeded in increasing the volume of customer loans by CHF 130.7 million (+ 3.0 percent) in the past six months. On the other hand, the trading success could be significantly increased compared to the previous year, thanks to skillful and successful actions in the financial markets.

A positive development is also evident in the success from commission and service business, which closed at CHF 5.4 million, 15.0 percent above the previous year's value. According to Heinrich Leuthard, Chairman of the Management Board of NKB, this is due not least to NKB's personal advice: "We owe this success to a consistently large inflow of new money in the investment area, the strategic expansion of this business area, the high advisory competence, as well as the personal and individual care of our investment customers." The generally rapid economic recovery and positive market forecasts also ensured an investment-friendly first half of the year.

The interest business recorded a decline of 5.0 percent to CHF 24.8 million, which was mainly due to value adjustments for latent default risks of CHF 0.9 million. These value adjustments resulted from the COVID-19 stress test that the bank conducted for the entire credit portfolio. The stress test simulates the balance sheets in an extreme scenario and provides information about the risk of endangered credit positions.

After profit appropriation, equity now amounts to CHF 478.5 million (CHF 470.8 million as of December 31, 2020).

Development of the 2022 – 2026 strategy on track

NKB is currently developing the strategy for the period 2022 – 2026. Future-oriented projects are being planned to continue to run the bank sustainably profitably and up to date. "We face the challenges in banking, such as digitalization. At the same time, however, we want to remain the bank that relies on personal and comprehensive advice for its customers," explains Heinrich Leuthard.

New branch in the Nähseydi area

Presumably in January 2022, NKB will be able to open the new Buochs/Ennetbürgen branch on the Nähseydi site. The focus is on a spacious self-service area with ATMs, deposit machines, changers, and coin counters (accessible 24/7) as well as several meeting rooms for individual consultation talks.

Contact

Heinrich Leuthard

Chairman of the Management Board

Phone 041 619 22 22

heinrich.leuthard@nk.ch