17 percent more profit: ZKB distributed record dividends

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As expected, Zürcher Kantonalbank (ZKB) today announced strong figures for the 2023 financial year.

The group’s profit increased by 17 percent compared to the previous year, reaching 1.24 billion francs. Operating income increased by 16.1 percent to 3.2 billion francs. The most important driver was the “extraordinarily strong interest business”, but there were also good results in the commission and service business as well as in the trading business.

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The bank generated broad-based net new money inflows and gained over 28,000 new active customers in total. This is not surprising either.

In light of the strong result, the bank council decided to distribute its highest ever profit distribution of 528 million francs to the canton and municipalities of Zurich. This is 37 million more than last year; a record!

358 million francs of the distribution will go to the canton and 170 million to the municipalities. In addition, the bank paid compensation of 30 million francs to the canton for providing a state guarantee.

As a thank you to its customers, the bank launched the “ZKB Banking” service as of January 1, 2024, removing annual fees from special accounts and debit cards.

Enables the creation of reserves as a result of the record

This strong result also allows the bank to further strengthen its own funds and create an additional 225 million francs as reserves for general banking risks.

ZKB also exceeded the 100 billion mark in mortgages for the first time.

Zürcher Kantonalbank continues to be awarded a AAA or Aaa rating by the rating agencies Fitch, Moody’s and Standard & Poor’s.

ZKB CEO Urs Baumann (56) does not expect a repeat of the extraordinary interest rate result in 2024, but still expects “attractive consolidated profit”.

Source :Blick