Zürcher Kantonalbank once again achieves a very pleasing half-year result
Media release from 28 August 2026
- The operating result rose by 12.1% year-on-year to CHF 783 million; the consolidated profit before taxes, at CHF 785 million, is 3.1% higher
- The result from commission business and services increased by 12.9% to CHF 598 million
- The broad-based net new money inflow of CHF 10.5 billion contributed to a 5.5% rise in client assets to CHF 610.8 billion
- The bank is highly capitalised; the corresponding key figures are well above the regulatory requirements
- The rating agencies continue to assign Zürcher Kantonalbank an AAA rating, demonstrating it is one of the safest universal banks in the world
Zürcher Kantonalbank achieved very encouraging results in the first half of 2026. The operating result increased by 12.1% year-on-year to CHF 783 million (previous year: CHF 698 million), and the consolidated profit before taxes rose by 3.1% to CHF 785 million (previous year: CHF 761 million). The very strong performance of the operating business surpassed the extraordinary result totalling CHF 62 million recorded in the first half of 2025, which was attributable mainly to the sale of Zürcher Kantonalbank Österreich AG.
A key factor contributing to the very encouraging half-year result was a strong result from commission business and services, which rose by CHF 68 million or 12.9% compared with the previous year, as well as a higher trading result totalling CHF 244 million, up 4.7% (previous year: CHF 233 million). The net result from interest operations amounts to CHF 836 million and is therefore slightly higher than the previous year’s figure (CHF 822 million). Operating income increased by 6.0% year-on-year to CHF 1,697 million (previous year: CHF 1,600 million). Operating expenses, at CHF 898 million, are 1.6% higher on the previous year (CHF 884 million). With a consolidated profit after taxes totalling CHF 679 million in the first half of 2026 (previous year: CHF 668 million), Zürcher Kantonalbank has demonstrated its strong and sustainable performance.
The bank’s diversification strategy has again proven its worth and remains a source of stability in a challenging environment.
“Zürcher Kantonalbank has once again demonstrated that it is a successful and reliable partner for its clients. We have generated a very pleasing half-year result. This success reflects our strong overall operating performance across all segments, as well as our strong market position in the Greater Zurich Area and beyond. The success of our growth strategy in the Retail and Corporate Clients segments, as well as in Private Banking and Asset Management, is also reflected in our ongoing ability, amid a highly competitive market environment, to attract new clients and generate a broad-based net new money inflow. We are particularly pleased with the sustained growth in wealth management – clear evidence of our clients’ confidence in our investment and advisory expertise,” says Urs Baumann, CEO of Zürcher Kantonalbank.
Stable result from interest operations despite the ongoing zero-interest-rate environment
With a share of just under 50%, interest operations remains the bank’s most important income stream. The net result from interest operations, at CHF 836 million, is 1.7% higher than in the previous year (CHF 822 million) despite a challenging interest rate environment. One of the factors contributing to this increase was the encouraging growth in volumes in the lending and mortgage business. Amid unchanged high quality standards, the bank’s portfolio of mortgage loans grew by CHF 2.2 billion or 2.0% to CHF 113.4 billion compared to the end of 2025. On the liabilities side, amounts due in respect of customer deposits rose from CHF 114.3 billion to CHF 115.1 billion.
Strong investment and trading business in a volatile environment
In commission business and services, the second-largest income stream, the bank achieved a 12.9% increase in the net result to CHF 598 million compared with the previous year (CHF 530 million). This growth is attributable mainly to commission income from securities trading and investment activities, which rose by CHF 77 million or 12.6% compared to the same period last year.
Client assets, which have risen by CHF 31.9 billion since the start of the year, stood at CHF 610.8 billion as at 30 June 2026 (previous year: CHF 579.0 billion). The managed assets included in this figure rose to CHF 527.2 billion, driven in particular by a broad-based net new money inflow totalling CHF 10.5 billion and a positive market performance amounting to CHF 18.9 billion.
The result from trading activities reflects increased client activity and the targeted exploitation of opportunities arising from the dynamic market environment. At CHF 244 million, the trading result – the bank’s third-largest income stream – came in CHF 11 million or 4.7% above the previous year’s figure (CHF 233 million).
Strategy-aligned growth leads to a slight increase in operating expenses
Operating expenses amounted to CHF 898 million in the first half of the year (previous year: CHF 884 million). The slight increase by 1.6% corresponds to the forecast. In line with the bank’s growth strategy, the headcount adjusted for part-time employees expanded by 136 full-time equivalents (FTEs) and totalled 5,886 FTEs as at 30 June 2026. Personnel expenses rose accordingly, by 2.9% to CHF 643 million (previous year: CHF 625 million). General and administrative expenses decreased by 1.6% to CHF 255 million (previous year: CHF 259 million).
Thanks to the improved income performance amid an only moderate rise in the cost base, the bank’s cost/income ratio (CIR) fell to 52.9% (previous year: 54.7%).
Stable depreciation and amortisation and lower provisions
At CHF 24 million, the value adjustments on participations as well as the expense from depreciation and amortisation of bank premises, tangible fixed assets and intangible assets were largely unchanged compared with the previous year. The line item Changes to provisions and other value adjustments and losses amounts to a net release totalling CHF 9 million (previous year: net release of CHF 6 million). This is attributable primarily to the net release of provisions for off-balance-sheet default risks totalling CHF 11 million.
Regulatory requirements remain comfortably met
The bank’s balance sheet structure has largely not changed. Total assets amounted to CHF 210.8 billion as at 30 June 2026 (previous year: CHF 206.2 billion). The bank holds more than a quarter of its total assets in the form of high-quality liquid assets (HQLA). Deposits with the Swiss National Bank, at CHF 35.4 billion, continue to account for the largest share. The short-term liquidity ratio (liquidity coverage ratio, LCR), is 134% (end of 2025: 136%); the long-term liquidity ratio (net stable funding ratio, NSFR) stands at 119%, which is slightly above the figure of 118% as at the end of 2025. The bank therefore continues to comply comfortably with regulatory liquidity requirements.
Zürcher Kantonalbank remains strongly capitalised. Its risk-based total loss absorbing capacity (TLAC) ratio amounts to 31.0% as at 30 June 2026 (end of 2025: 32.2%). The risk-based capital ratio included in this figure on a going-concern basis, at 21.5% as at the half-year of 2026 (end of 2025: 22.7%), clearly exceeds the current capital adequacy requirement of 13.8%. The risk-based capital ratio on a gone-concern basis, which is likewise included in the TLAC ratio, is 9.5%. It, too, exceeds the requirement at 7.9%.
The bank’s non-risk-based total loss absorbing capacity ratio (TLAC leverage ratio) increased from 10.1% as at the end of 2025 to 10.2%. The leverage ratio (going-concern) included therein remains unchanged compared with the end of the previous year at 7.1% and is likewise significantly above the requirement of 4.5%.
The rating agencies Fitch, Moody’s and Standard & Poor’s left their assessment of Zürcher Kantonalbank unchanged at the highest ratings of AAA and Aaa, respectively. Zürcher Kantonalbank is also one of the safest universal banks in the world on a stand-alone basis (without taking into account any support from the canton), as evidenced by the standalone rating of aa- (Standard & Poor’s).
Outlook
“Geopolitical and economic uncertainties are likely to persist in the second half of the year. Our broadly diversified business model, which is geared towards continuity and stability, plays a key role in enabling us to succeed even in such an environment. We are consistently pursuing our proven strategy, strengthening our leading position in the Greater Zurich Area even further, growing in a targeted manner in selected segments within Switzerland and exploiting international opportunities. Based on the very encouraging half-year result, we expect to achieve an overall pleasing annual result,” says CEO Urs Baumann.