Neuenburger Kantonalbank reported a half-year net profit of 24.1 million francs, broadly unchanged from the prior-year period, as rising costs offset gains in credit volumes and risk adjustments.
The bank’s core interest business, which remains its largest revenue pillar, saw gross income fall 0.8% to 60.3 million francs in the first six months. However, a 5.8% increase in net interest income to 62.6 million francs was supported by a 2.2 million franc release of credit risk provisions, reversing a 1.7 million franc charge in the prior-year period. Higher lending volumes also helped mitigate the impact of compressed net interest margins.
Non-interest income streams showed modest growth. Commission and service revenues rose 2.6% to 16.3 million francs, driven by securities and asset management activity as well as growth in assets under management. Trading income increased nearly 5% to 6.3 million francs.
Cost pressures persisted, with personnel expenses climbing 5.1% to 23.7 million francs as the bank expanded its workforce to 346 employees under a new organizational model. Other operating expenses rose 7.7% to 18.7 million francs, primarily due to higher IT spending, unlike the prior year when extraordinary customer support measures had accounted for much of the increase.
Loan growth was selective. Mortgage receivables rose 1.5% to 8.88 billion francs since year-end, while other customer loans increased 5.1% to 879 million francs. Customer deposits remained flat at 7.04 billion francs, a slowdown from the 11% year-over-year gain recorded at the end of 2025. Total assets edged up 1.2% to 12.58 billion francs.
The bank allocated 17.5 million francs to general bank risk reserves, leaving its half-year profit unchanged versus the prior period. For the second half, Neuenburger Kantonalbank struck a cautious tone, citing an uncertain economic environment, though it does not anticipate a significant deterioration in business performance. The lender maintained its full-year guidance, expecting operating results to match 2025 levels.
