St.Galler Kantonalbank increases profit

Strong expansion in business volume

Managed assets rise by 11.3 % to CHF 71.8 billion at the end of December. The strong performance of investment products and net new money inflows of CHF 4.2 billion contributed to this strong growth. A significant part of these new assets come from private individuals in Switzerland, and, above all, from business with institutional investors. «Particularly in the global custody business with pension funds we were able to exploit market opportunities and acquire new customers », says Christian Schmid, CEO of St.Galler Kantonalbank.

Total loans to clients rise by CHF 1.0 billion (+2.9 %) to CHF 34.7 billion. Mortgages for private individuals account for the largest share of new business.

Growth across all revenue streams

Gross result from interest operations rises by 5.9 %. Thanks to strong sales and market performance, result from commission business and services also increases significantly (+7.0 %). Revenues from fund, custody and asset management business are up on the previous year due to strongly increased managed assets. Result from trading activities (+11.2 %) benefits from strong market activity. Overall, operating income rises by 7.7 % compared with the previous year.

Operating expenses increase by 6.5 %. In line with the company’s growth, targeted investments are being made for the future. The workforce is further expanded; at the end of the year, 36 more employees than in the previous year are working at the bank. At the same time, consistent investment is being made in the renewal, further development, and security of the IT landscape. Personnel expenses rise by 7.0 %, while operating expenses increase by 5.6%.

Healthy Loan Portfolio

Net value adjustments and provisions for credit risks amount to CHF 10.4 million. These precautionary measures for selective loans take into account the business situation of companies in Eastern Switzerland, which varies significantly from sector to sector. Overall, the economy in Eastern Switzerland is proving resilient despite the challenges it faces.

Increased Dividend

The Board of Directors will propose an increase of dividend per share from CHF 19 to CHF 20 to the Annual General Meeting on 29 April 2026. This means that SGKB will distribute 52.8 % of its consolidated profit to shareholders. The canton of St.Gallen, as the main shareholder, will receive dividends of CHF 61.1 million.

St.Galler Kantonalbank expects the consolidated profit for the 2026 financial year to remain at the previous year's level, assuming that current interest rates remain stable and the Swiss economy will not go through a period of recession.

Financial Factsheet including Group Key Figures, Balance Sheet, Income Statement, share information: sgkb.ch/factsheetye25

Media release
Financial Factsheet