Bank CIC reported gains in all key business areas in the first half of the year. The subsidiary of the French group Crédit Mutuel is also cautiously optimistic for the second half of the year.

In the first half of 2022, Swiss bank CIC booked gains in all of its main businesses despite pressure on margins and a cautious lending policy. Gross income from the interest business increased by 0.7 percent year-on-year to 55.2 million Swiss francs ($58.6 million), according to a media release.

The commission and services business achieved an increase of 17.1 percent to 22.2 million francs, due to higher custody account volumes, increased asset management mandates, and a continued high level of activity among customers in the investment sector.

High Earning Power

The trading and foreign exchange business, which benefited from strong volatility and client demand for hedging, increased by 26 percent to 12.6 million francs. Other ordinary income grew by around 1 million Swiss francs from the sale of an investment.

Operating income increased by 7.2 percent, reaching a record of 94.8 million Swiss francs. The 14.5 percent increase in half-year profit to 18.2 million Swiss francs also represents an all-time high.

Cautious Cost Growth

The continuation of Bank CIC's consistent growth strategy and investments in state-of-the-art technologies led to a below-average cost increase of 3.6 percent in the first half of 2022 compared to revenue growth. CIC continued to investment in new employees and training, resulting in a 3.8 percent higher personnel costs.

Total assets increased by 1.4 percent to 13.4 billion Swiss francs in the first half of the year stemming from customer loans, which increased by 2.2 percent to 9.6 billion francs. In contrast, customer deposits remained at the previous year's level of 9.0 billion francs. The liquidity ratio LCR exceeded the regulatory requirements by 111 percent. At the same time, equity was strengthened by 784 million francs over the previous year.

Subdued Optimism

The subsidiary of the French group Crédit Mutuel operates in Switzerland with over 430 employees in ten locations and positions itself as a bank for entrepreneurs and companies. In his outlook, CEO Thomas Mueller notes that while uncertainty and change are currently dominating the financial and economic discussion he is «cautiously optimistic» about prospects for the second half of the year.