The Urner Kantonalbank (UKB) reported a first-half net profit of 8.9 million Swiss francs, a 13.3% decline from the same period in 2025, as a one-off impairment on its fintech subsidiary Kamuno weighed on results.
The regional lender highlighted strong underlying growth in its core business despite the headline decline. Net interest income, its largest revenue stream, fell 3.3% to 18.9 million francs due to sustained pressure on net interest margins. Customer lending rose 2.1% to 3.5 billion francs, driven by mortgage growth, while customer deposits edged up 0.4% to 2.5 billion francs.
Fee and commission income increased 7.8% to 4.3 million francs, supported by a 9% rise in deposit volumes. The bank attributed the deposit growth to strong net new money inflows, though it did not disclose the absolute figure.
Operating expenses climbed 5.5% to 14.9 million francs, outpacing the 2.4% decline in total operating income to 25 million francs. The bank’s net profit was further reduced by a 13.3 million-franc writedown on its Kamuno stake, compared with a 1.2 million-franc impairment in the prior-year period. UKB offset most of the loss by drawing 12 million francs from its general bank risk reserves, reducing its capital ratio from 8.9% at end-2025 to 8.6% at mid-2026.
Kamuno, UKB’s fintech unit, has onboarded over 3,000 SMEs and originated loans in the double-digit millions since launch, but has yet to meet its growth and profitability targets. The bank did not quantify the financial impact of Kamuno in its half-year statement, deferring details to its full interim report.
