Year end results 2022: Higher consolidated profit, broad-based growth

Strong sales performance in all business segments

The past financial year once again confirmed the high level of confidence that clients place in St.Galler Kantonalbank. Net new money amounted to CHF 2.7 billion (4.9 %) and assets under management reached CHF 53.6 billion by the end of 2022. CEO Christian Schmid declares: «I am particularly pleased with this very good growth in a challenging investment year. It is broadly supported by our clients across all business areas and proves our strong positioning in the market. »

Loans to clients increased by 6.7 % in the reporting year to a new high of CHF 30.4 billion. Traditional mortgages to private individuals continued to play a significant role, with stable growth of around CHF 500 million (+3.2 %).

Balanced business model proves its worth

Consolidated profit increased by 1.4 % to CHF 183.8 million. Once again, the balanced business model with different income pillars proved its worth.

The interest operations developed positively with an increase in income of 3.2 % to CHF 317.0 million. This reflects the growth of the bank on the one hand, and the constantly changing interest rate environment during the year on the other.

The corrections on the financial markets caused the result from commission business and services to fall by 6.1% compared to the previous year. The result from trading activities and the other result from ordinary activities also fell due to market-related valuation corrections.

The level of operating expenses was pleasing, remaining at the previous year's level.

Thanks to the solid credit portfolio, it was possible to release CHF 5.6 million in net value adjustments and provisions from the credit business in this financial year too. At the same time and to a comparable extent, for reasons of prudence, reserves for general banking risks of CHF 5 million were provided.

Unchanged high dividend

The Board of Directors will propose an unchanged dividend of CHF 17 per share to the Annual General Meeting on 3 May 2023. This corresponds to a dividend yield of 3.5 % calculated on the 2022 year-end share price. As the main shareholder, the Canton of St.Gallen will thus receive CHF 52 million.

Outlook for 2023 results

From today's view, for the 2023 financial year St.Galler Kantonalbank expects a result above the previous year.

Digitalisation enhances customer experience

This year, digital innovations were again consistently aimed at further improving the customer experience. For example, customers now have access to a fast and uncomplicated purely digital account opening service 7 × 24 hours; this is even available for joint partner banking relationships. CEO Christian Schmid states: «St.Galler Kantonalbank thus confirms its digital pioneering role, as it is one of the first banks to offer this complete service to its customers.»