Schaffhauser Kantonalbank with record results – Alain Schmid becomes the new CEO

8 March 2023

• Growth in core business – customer loans exceed 7 billion for the first time, 4.5% more asset management mandates, flourishing trading business
• Operating income increases by 1.9% to 138.3 million
• Annual profit increases by 10.3% to 55.3 million
• Canton receives record payout of 44.3 million
• Alain Schmid will replace Martin Vogel as CEO in mid-July 2023

Growth in core business

The Schaffhauser Kantonalbank achieves a very positive result in 2022. The operating interest business is developing well thanks to significant growth. Gross interest income increases by 2.6% to 77.5 million. Net interest income increases by 5.0 million to 86.6 million. Mortgage loans increase by 10.1% and customer loans total exceed the 7 billion mark for the first time. The bank receives 118.6 million in new customer deposits – the 6 billion mark is reached in customer deposits.

Expansion of asset management in an uncertain investment environment

2022 was not a good year for investors. Almost all asset classes have lost ground, in some cases significantly, due to market conditions. This influences the valuation of the assets under management. Commission income fell by 2.8% to 40.0 million. The sustained customer confidence is pleasing. This is documented by further net deposit inflows and a 4.5% increase in the number of asset management mandates.

Increased operating income thanks to several income pillars

Several pillars of income ensure success even in a challenging environment. The lending business (+5.0 million) and the trading business (+1.5 million) mainly contributed to the increase in operating income. This is increasing despite a slight decline in the commission and service business and the lack of other ordinary income due to lower stock market valuations. Overall, the diversification with three income pillars documents the high resilience of the bank.

Continued investments in skilled workers, IT and digitization increase business expenses

Process optimisations, innovations and digitization developments are promoted in a targeted manner. Additional specialists are hired for this purpose. Personnel expenses increase by 3.0 million. Thanks to the increase in earnings, the cost/income ratio remains at a low 43.8%. Material expenses increased, driven in particular by higher expenditure for IT services, by 5.8% to 14.2 million. Overall, operating expenses increased by 6.7% to 60.6 million stay high for years to come. There are currently reserves of EUR 12.3 million for the further expansion and development of digital offerings.

“Record dividend” for the owner, strengthened equity

Despite higher earnings, business success is almost 1.8% below the previous year. The main influencing factors are the costs triggered by the strong investment activity. After an allocation of 20.0 million to the reserves for general banking risks, an annual profit of 55.3 million remains. The owner receives a record distribution of 44.3 million (+10.4%). At the same time, the bank’s own funds will be further strengthened.

General uncertainties and high investments mean that lower profits can be expected

Geopolitical tensions will continue to create uncertainty in the economy and on the financial markets. Rising interest rates require our attention in the real estate business. As in previous years, the pressure on margins will remain high due to competition, and the rapidly changing needs of customers make adjustments to services necessary. This requires substantial investments in new products, digitization and process automation as well as targeted staff expansion. The higher costs and the competitive environment, which is characterized by uncertainties, mean that lower profits can be expected.

New CEO takes over from July 2023

The board of directors of the Schaffhauser Kantonalbank has appointed Alain Schmid as the new CEO. He will take over operational management from mid-July 2023. In order to ensure a smooth transition in management, he will join the bank in May 2023. Alain Schmid succeeds Martin Vogel, who is retiring after almost 15 years as CEO. «The board of directors would like to thank Martin Vogel for his outstanding service. He led the Schaffhauser Kantonalbank very successfully through difficult times and pushed forward key developments with a lot of passion and visionary foresight. He is handing over to his successor a very healthy and financially strong financial institution,” said Bank President Dr. Florian Hotz.

Alain Schmid (1977) has over 30 years of experience in the financial sector and brings with him a wide range of managerial experience. He learned the banking business from scratch: He started his career with an apprenticeship at the Zürcher Kantonalbank. He has held various central positions at Credit Suisse in recent years, most recently as Head of Business Banking for commercial customers and the payment transaction business at Credit Suisse (Switzerland) AG with more than 130 employees. From 2012 to 2016 he was CEO of the technology and software company Fides Treasury Services AG. Alain Schmid holds an Executive MBA from the University of Zurich and holds various directorships in the financial sector, including at SIX Interbank Clearing AG. He currently lives in Stäfa (ZH) with his wife and two children. His move to Schaffhausen is planned. Alain Schmid on his new position: “It is an honor for me to be able to manage the leading bank in the Schaffhausen economic area, and I would like to thank the board of directors for the trust they have placed in me. The bank is in excellent shape and ideally positioned to continue to be a strong partner for the people of Schaffhausen and regional entrepreneurship. As a modern universal bank, it is important to optimally address the diverse needs of customers. In addition, new digital technologies will make the financial business even more demanding, but also more exciting. I am very much looking forward to further developing Schaffhauser Kantonalbank together with the employees.» His move to Schaffhausen is planned. Alain Schmid on his new position: “It is an honor for me to be able to manage the leading bank in the Schaffhausen economic area, and I would like to thank the board of directors for the trust they have placed in me. The bank is in excellent shape and ideally positioned to continue to be a strong partner for the people of Schaffhausen and regional entrepreneurship. As a modern universal bank, it is important to optimally address the diverse needs of customers. In addition, new digital technologies will make the financial business even more demanding, but also more exciting. I am very much looking forward to further developing Schaffhauser Kantonalbank together with the employees.» His move to Schaffhausen is planned. Alain Schmid on his new position: “It is an honor for me to be able to manage the leading bank in the Schaffhausen economic area, and I would like to thank the board of directors for the trust they have placed in me. The bank is in excellent shape and ideally positioned to continue to be a strong partner for the people of Schaffhausen and regional entrepreneurship. As a modern universal bank, it is important to optimally address the diverse needs of customers. In addition, new digital technologies will make the financial business even more demanding, but also more exciting. I am very much looking forward to further developing Schaffhauser Kantonalbank together with the employees.» to be able to manage the leading bank in the Schaffhausen economic area, and I would like to thank the board of directors for the trust they have placed in me. The bank is in excellent shape and ideally positioned to continue to be a strong partner for the people of Schaffhausen and regional entrepreneurship. As a modern universal bank, it is important to optimally address the diverse needs of customers. In addition, new digital technologies will make the financial business even more demanding, but also more exciting. I am very much looking forward to further developing Schaffhauser Kantonalbank together with the employees.» to be able to manage the leading bank in the Schaffhausen economic area, and I would like to thank the board of directors for the trust they have placed in me. The bank is in excellent shape and ideally positioned to continue to be a strong partner for the people of Schaffhausen and regional entrepreneurship. As a modern universal bank, it is important to optimally address the diverse needs of customers. In addition, new digital technologies will make the financial business even more demanding, but also more exciting. I am very much looking forward to further developing Schaffhauser Kantonalbank together with the employees.» in order to continue to be a strong partner for the people of Schaffhausen and regional entrepreneurship. As a modern universal bank, it is important to optimally address the diverse needs of customers. In addition, new digital technologies will make the financial business even more demanding, but also more exciting. I am very much looking forward to further developing Schaffhauser Kantonalbank together with the employees.» in order to continue to be a strong partner for the people of Schaffhausen and regional entrepreneurship. As a modern universal bank, it is important to optimally address the diverse needs of customers. In addition, new digital technologies will make the financial business even more demanding, but also more exciting. I am very much looking forward to further developing Schaffhauser Kantonalbank together with the employees.»

Bank President, Dr. Florian Hotz, on the election of the new CEO: “We are delighted that in Alain Schmid we have been able to recruit an experienced leader with a great track record in the world of finance. He brings with him all the professional and personal requirements to continue to lead our bank successfully into the future». As part of a systematic follow-up process, Bankrat has evaluated various internal and external candidates in recent months. The ideal successor has now been found in Alain Schmid.

Source: Schaffhauser Kantonalbank