Migros Bank reported a 14.3% increase in net profit for the first half of 2026, rising to 151.5 million Swiss francs, supported by gains in both interest and asset management operations.
The bank's business success, a key profitability metric, grew 14.7% year-over-year to 185.5 million francs, while total operating revenue advanced 8.6% to 433.8 million francs. Net interest income, the largest contributor, climbed 9.8% to 319.4 million francs, driven by lower refinancing costs and reduced loan loss provisions.
Customer lending edged up 0.2% to 51.6 billion francs at the end of June, while customer deposits rose 0.4% to 46.1 billion francs, including 37.4 billion francs held in private, savings and retirement accounts. Credit risks remained stable despite geopolitical and economic uncertainty, supported by cautious risk policies and a diversified loan portfolio, according to CEO Manuel Kunzelmann. The bank continues to focus on domestic small and medium-sized enterprises in its corporate client business.
Asset management activity also outperformed, with commission income up 10.2% to 67.5 million francs. Assets under management in advisory mandates increased 10.9% in the first half, reflecting early benefits from the bank's 'Strategy 2030,' which emphasizes wealth advisory and retirement planning. The initiative aims to further develop asset management as a core earnings pillar.
Operating expenses declined 0.5% to 220.9 million francs, improving the cost-to-income ratio to 50.1%. The bank continues to invest in customer channels, rolling out a new branch concept under 'Strategy 2030' to better integrate digital services with in-person advisory.
