Baloise Bank SoBa enjoyed a successful operating performance in the first half of 2021. Custody business grew strongly, in line with strategic targets, thanks to an increase in the number of asset management mandates. Jürg Ritz, CEO of Baloise Bank, expressed his satisfaction: 'Our combined bank and insurance business model is bearing fruit.'

Financial results for the first half of 2020 in brief

• Profit for the first six months up by 48.1 per cent year on year at CHF 13.1 million
• Consistent financial performance of interest margin business based on growth of lending and more favourable refinancing terms; gross interest income up by 0.8 per cent
• Clear acceleration of growth in the private banking business, in terms of both the deposit volume and the number of new asset management mandates
• New product offers as part of the national sales expansion  

Strengthening of tailored customer advice gives private banking a boost
Gross interest income increased by a modest 0.8 per cent year on year. But although there were no significant defaults, net interest income was down slightly year on year (by 1.2 per cent) due to impairment losses on not-at-risk receivables. The stabilisation in this segment is attributable to healthy growth in the credit business and favourable refinancing terms. 
The bank's strategy of providing banking and insurance services under one roof, which is unique in Switzerland, once again resulted in healthy growth of asset management and investment advice mandates (up by 17.4 per cent in the first half of the year). 'By collaborating with the insurance business, we can offer our customers tailored pension and asset management solutions and comprehensive advice on all financial matters. This is what makes us stand out,' adds Jürg Ritz. The profit for the period went up by 48.1 per cent year on year. The uplift in profit before taxes came to CHF 1.2 million (11.2 per cent) even after adjustment for one-off investments in the business model in the prior-year period.

Country-wide expansion also reflected in new product offers
The national expansion of sales under the Simply Safe strategy is progressing apace. The next step in this country-wide expansion plan involves the launch of new products in the fourth quarter. These new products will complement the national expansion and offer customers the possibility to make unlimited cash withdrawals free of charge from all cash machines across Switzerland. In addition, customers will enjoy comprehensive insurance protection against cyber crime when using their complementary Visa debit card - a protection that is particularly relevant in light of the growing importance of e-commerce. 'This is yet another way in which our customers benefit from our provision of banking and insurance services from a single source,' concludes Jürg Ritz.