TKB 2023 Financial Growth: Increased Profitability, Dividend Proposal, and Customer Acquisition

2024-02-15 06:33:04

Zurich (awp) – Thurgau Cantonal Bank (TKB) continued its growth in credit activity in 2023, supported by the increase in interest rates. The establishment has seen its operational profitability increase by a fifth and is proposing to increase the dividend.

Net profit increased by 7.5% compared to 2022 to 159.0 million Swiss francs, the Northern Switzerland establishment indicated on Thursday. The board of directors proposes the payment of a dividend enriched by 20 cents to 3.30 Swiss francs per participation certificate. Main shareholder, the canton of Thurgau should be paid 51.3 million Swiss francs, while the municipalities will receive a maximum amount of 3 million.

TKB’s operating profit increased (+21.3%) to 228.1 million Swiss francs, despite a sharp increase in expenses, which increased by 8.4% to 186.1 million Swiss francs. Revenues jumped 14.6% to 426.9 million Swiss francs. The cost-to-revenue ratio improved by 2.6 percentage points to 42.5%,

In its press release, the bank claims to have gained 7,000 customers last year.

In its core business, the bank experienced vigorous growth, as evidenced by the 11.6% increase in net interest income to 285.1 million Swiss francs. In terms of volumes, mortgage receivables reached 23.98 billion (+3.7%) and customer deposits 18.60 billion (-0.6%).

Other activities developed favorably, notably commission operations and service provision, whose revenues increased by 4.2% to 74.7 million Swiss francs. Income from trading activity soared by half to 61.4 million Swiss francs.

At the end of December, the balance sheet presented a sum of 32.80 billion Swiss francs (-1.5%). Off balance sheet, the assets under management increased by 10.8% to 25.40 billion. Net inflows of money were much higher than in 2022, at 2.25 billion compared to 1.44 billion previously.

For the current year, management expects a lower result than last year.

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