The Schwyzer Kantonalbank (SZKB) reported a net profit of CHF 47.0 million for the first half of 2026, a 25.4% increase from CHF 37.4 million in the same period of 2025, according to a statement released on Thursday.
Business success, a key profitability metric, rose 22.6% to CHF 79.7 million, recovering from a 15.9% decline in H1 2025. Operating income climbed 14.3% to CHF 157.2 million, driven by a 19.8% year-on-year increase.
Net interest income advanced 21.9% to CHF 90.3 million, supported by lower interest expenses and the release of loan-loss provisions totaling CHF 5.6 million. This follows a 14.3% decline in gross interest income in H1 2025, attributed to interest rate cuts by the Swiss National Bank. Gross interest income rose 5.5% to CHF 90.3 million in the latest period.
Commission and services income grew 10% to CHF 38.2 million, reflecting improved market conditions after March turmoil and heightened client trading activity. Deposit volumes reached CHF 13.4 billion, with assets under management rising by CHF 134 million in discretionary mandates and CHF 122 million in proprietary funds. Trading income, however, declined 4.5% to CHF 21.2 million, while foreign exchange revenue increased 10.2% to CHF 5.0 million.
Total expenses rose 4.6% to CHF 70.4 million, reflecting investments in digitalization and regulatory compliance. Personnel costs increased 3.6% to CHF 46.8 million, while other operating expenses climbed 6.7% to CHF 23.6 million. The cost-to-income ratio stood at 46.7%.
Customer deposits grew 5.6% to CHF 17.8 billion, while loans to customers declined 0.3% to CHF 19.3 billion, leaving customer deposits covering 92% of outstanding loans. The total capital ratio was 24.4%, and the balance sheet expanded 2% to CHF 24.6 billion.
For the second half of 2026, SZKB expects a similar trajectory in revenues and costs under a stable SNB policy rate of 0%. However, business success growth is projected to moderate due to the absence of further loan-loss provision releases.
