Migros Bank again saw significant growth in volumes and earnings in its core business. Across all divisions, operating income increased by 14% to CHF 652 million in the reporting year.
Due to the continued high level of customer confidence, Migros Bank saw significant growth in its core business in 2021. This included a 9.4% increase in customer deposits to CHF 42.2 billion and a 53% rise in the number of asset management mandates.
increase in mortgage volume
Encouraging trend in loans
The volume of customer loans increased in parallel with customer deposits. The mortgage volume rose by 6.5% to CHF 42.6 billion. The increase in new customer loans across all divisions amounted to CHF 2.8 billion (+6.7%). Around half of this was attributable to the corporate clients business, which had its best financial year to date, due in part to a twofold increase in the number of acquisition and succession financing transactions. The growth in customer lending in both the corporate clients and private clients business was helped by an unchanged prudent risk policy, which also contributed towards an increase in net interest income (CHF 482 million, +15.2%).
Migros Bank is continuously expanding its range of services. In the private clients business, the brokerage service Nextkey was launched in collaboration with the subsidiary CSL Immobilien AG. Private clients also benefit from partnerships with providers of sustainability solutions, such as Helion for low-energy renovation and gowago.ch for e-mobility.
increase in the value of all securities in Migros Bank custodian accounts
Investment business further expanded
The performance of the investment business was also encouraging. The value of all securities held in Migros Bank custodian accounts rose by 19.6% to CHF 16.8 billion. Commission income also increased by 7.9% to CHF 115 million due to the strong investment business. Trading business grew by 25.5%. Operating income across all divisions was up 14% to CHF 652 million.
Investments in the future
Operating expenses amounted to CHF 342 million (+9.1%), with personnel and material expenses both rising. Migros Bank employed around 100 new staff in 2021. It also invested in training in order to align advice even more to specific customer needs and to take account of the new requirements and job profiles resulting from digital transformation. Material expenses increased by 11.6%, due primarily to investments in the brand and in expanded digital services.
At 51.5%, the cost-income ratio was again encouragingly low compared with the sector average. Without special items, this figure would have been even better: as announced on 3 November 2021, Migros Bank voluntarily paid out retrocessions on Migros Bank funds of CHF 60 million to around 37’000 customers. Of this amount, CHF 7.6 million was allocated to commission income and CHF 52.4 million to provisions/losses. After taking into account depreciation, provisions and losses, operating income amounted to CHF 234 million.
Well positioned thanks to strategic initiatives
Due to sustained pressure on net interest margins, the general conditions will remain challenging in 2022. Migros Bank sees itself in good shape, and its position is further strengthened by its strategic initiatives. These include expanding direct sales activities, increasing innovation to boost the core business with corporate and private clients, improving operational processes, and leveraging synergies with the Migros Group (e.g. with the Cumulus credit card).
|
in CHF million |
2021 |
2020 |
Change in % |
|
Net revenue from goods and services sold |
14 |
11 |
25.1% |
|
Income from financial services |
762 |
758 |
0.5% |
|
Other operating income |
2 |
0 |
307.4% |
|
Total income |
778 |
770 |
1.0% |
|
Earnings before financial income and taxes |
233 |
234 |
–0.5% |
|
Segment assets |
54'556 |
50'615 |
|
|
Investments in long-term assets |
39 |
38 |
|
|
Employees |
1'722 |
1'622 |
|