The current PostFinance Ltd Interim Report
The first six months of 2024 were marked by a series of financial policy and social developments. Global economic uncertainty, driven by geopolitical tensions and volatile markets, continued to test the resilience of financial markets.
In the first six months of the year, PostFinance generated profit as per the accounting rules for banks (ARB) of 64 million francs. This represents a decline of 26 million francs compared with the prior-year period. Interest income on our financial investments saw a significant increase in the first half of 2024, up 60 million francs year-on-year. Since the interest rate turnaround, it has again been possible to achieve better returns on new investments on the financial markets. This enabled us to let our customers share in growth in the form of attractive customer interest rates. As a result of the reduction in the policy rate in the first half of 2024 and the interest rate adjustment for interest-bearing minimum reserves at the SNB, the gross result from interest operations declined slightly overall. The result was also impacted by a value adjustment of 25 million francs on an individual item in our investment portfolio.
Despite various changes in customers’ habits and economic trends, PostFinance recorded a rise in both service and commission income and trading portfolio assets. Following the subdued mood on the equity markets a year ago due, not least, to the CS crisis in March 2023, customer assets in investment products have now risen significantly again and PostFinance recorded an increase in e-trading activity.
Operating expenses rose by a total of 32 million francs. Higher expenses in the operating environment and in project business increased general and administrative expenses. Personnel expenses increased due to a higher headcount, higher expenses for employee benefits and increased salary costs. Strategically, PostFinance continues to invest in the simplification and digitization of processes for the benefit of our customers. Headcount in the Distribution unit was also increased due to measures to improve customer satisfaction.
The sale of a participation generated extraordinary income of 36 million francs. Tax expenses rose by 2 million francs year-on-year.