Howl of victory from a humble seat – inside Paradeplatz

“Profits increased significantly”, “The five objectives for the strategy period until 2025 were achieved after two years”:

This was the celebration this morning by the management of Basler Kantonalbank, one of the country's most important state banks.

If you delve into the details, you will see a different picture. BKB, like many other typical Helvetian “savings and loan banks,” made gains in one business in particular:

That interest.

Give a little here, ask for a lot there – that was the mantra that worked perfectly in 2023, the year following the interest rate shift in 2022.

To the joy of bank managers, to the distress of savers. They're looking down the drain — but that's their fault because they change banks less often than they change health insurance companies.

The supposed super-success of BKB thus depended almost exclusively on the difference between Sparbüechli's expenses and mortgage income.

At the parent company, i.e. BKB without subsidiaries, “net profit from interest business” rose by 55 million to almost 270 million.

An increase of more than a quarter.

In contrast, the other two income pillars pale in comparison. “Success from commission and service business,” meaning BKB's good advice, only increased by a healthy 7 percent.

Finally, there was an increase of about 10 percent in trading.

The situation at Cler, Basler KB's cheap bank, is more stark, i.e. more biased. There has been a real collapse in everything except the interest rate business.

This increased by a disappointing 4 per cent, while Claire's advice received a lower rating of 14 per cent. Official reason:

“In addition to the general hesitation on the part of clients in the securities and investment business, due in particular to the aforementioned withdrawal from business areas that are no longer aligned with the strategy.”

Finally, trading income also decreased by approximately 4 percent.

The conclusion is worrying: BKB could pressure the interest rate until it becomes ineffective.

However, when it has to impress with its performance, especially in the area of ​​investment advice, negative growth can be controlled.

But hey, we're the knowledge office in the northwest corner: everyone wants to deposit their money there.