Comments on the 2024 accounts

Receivables from banks, consisting mainly of short- and medium-term deposits placed with investment-grade banks, amounted to CHF 0.1 billion.

At the end of 2024, as at the end of 2023, the balance sheet contains no receivables from securities financing transactions (reverse repo).

Advances to customers, less value adjustments for default risks, increased by CHF 0.8 billion to CHF 23.5 billion (+3.7%).

Mortgage loans rose by CHF 0.8 billion to CHF 19.8 billion (+4.4%). Other amounts due from customers amount to CHF 3.7 billion.

The significant increase in advances to customers demonstrates BCF’s strong support for the economy of the Canton of Fribourg, particularly for SMEs and the real estate market, while practicing sound risk management.

Financial investments amounted to CHF 1.4 billion. They include securities acquired for investment purposes and as a cash reserve (over 99%), precious metals stocks and real estate held for resale.

Tangible fixed assets, consisting mainly of buildings used by the Bank, are recorded in the balance sheet at CHF 80.6 million, after depreciation.

On the liabilities side, total liabilities to banks remained stable at CHF 1.2 billion.

At the end of 2024, BCF had no receivables from securities financing transactions.

Customer deposits rose from CHF 0.5 billion to CHF 17 billion.

Cash bonds increased by 19% to 0.4 billion.

Total borrowings and loans from the central mortgage bond institution amounted to CHF 7.6 billion. In 2024, the Bank issued two new bonds of CHF 250.0 million and subscribed to the various issues of the Pfandbriefzentrale Schweizer Kantonalbanken for a total amount of CHF 520.0 million. During the same period, CHF 363.0 million of the Pfandbriefzentrale Schweizer Kantonalbanken were repaid and CHF 150.0 million of the bonds were repaid.

Provisions comprise amounts to hedge the Bank’s operational risks and value adjustments for default risks on off-balance-sheet liabilities. They amounted to CHF 19.111.8 million, compared to CHF 19.1 million.

The reserves for general banking risks, considered as equity capital, were increased by an allocation of CHF 63.0 million. They amount to CHF 782.0 million.

Shareholders’ equity consists of the endowment capital, the legal reserve and the reserves for general banking risks. The endowment capital of CHF 70 million, which has remained unchanged since 1981, is made available in its entirety by the State of Fribourg.

After allocating funds to reserves for general banking risks and after profit distribution, total equity increased by CHF 128.7 million to CHF 2.6 billion. The CET1 (Common Equity Tier 1) ratio was 18.93%. BCF thus largely complies with the relevant requirements.

BCF is achieving an increase in an exercise described as excellent. This record result allows BCF to pay the Canton CHF 98 million, CHF 23 million more than the previous year. Taking into account taxes, the canton, municipalities and parishes receive a total of CHF 107.9 million.

These results also enable BCF to strengthen its equity base and allocate CHF 63.0 million to reserves for general banking risks and CHF 61 million to the retained earnings reserve.

This confirms BCF’s strong market position by offering a local service and decisive and sustainable support to the Canton economy, while at the same time achieving very good operational profitability.

Total operating income increased by CHF 24.2 million to CHF 394.7 million (+6.5%).

Interest operations

Net interest income rose by CHF 14.1 million to CHF 336.5 million (+4.4%).

This result, driven by the growth in advances to customers, is also influenced by the favourable change in value adjustments for default risk and losses related to interest operations, amounting to CHF 15.1 million, compared with CHF 28.5 million the previous year.

The share of interest income represents 85% of the total operating income.

Commissions and service operations

The result of commission, wealth management and service operations, progresses substantially of CHF 3.1 million to CHF 42.4 million (+7.9%).

Trading operations

Income from trading operations, which is mainly composed of income from foreign exchange and precious metals, progresses of CHF 0.9 million to CHF 11.7 million (+7.8%).

Other ordinary results

The other ordinary results show income of CHF 4.1 million, compared with excess of expenses of CHF 2.0 million the previous year.

Operating expenses total CHF 131.6 million, an increase of CHF 4.9 million (+3.9%). Provided for in the budget, they once again emphasise BCF’s willingness to invest in the future. With this in mind, it has increased its workforce and continued to modernise its head office and branch network, as well as investing in innovation projects, digitalisation and process simplification.

The cost-to-income ratio after depreciation was 35.3%, confirming the Bank’s effectiveness.

Value adjustments on participations, amortisation on tangible assets and intangible assets

Depreciation of tangible fixed assets and value adjustments on investments totaled CHF 26.7 million, compared with CHF 10.2 million the previous year, an increase of CHF 16.5 million.

Changes in provisions and other value adjustments, losses

Changes in provisions, other value adjustments and losses have no impact on the 2024 operational result.

Operating income

Operating income reached CHF 236.5 million, an increase of CHF 12.3 million (+5.5%).

Taxes

The municipalities received CHF 4.1 million, the parishes CHF 0.5 million and the Canton CHF 5.3 million.

Profit for the year

After an allocation of CHF 63.0 million to the reserves for general banking risks, profit amounted to CHF 163.7 million, an increase of CHF 2.2 million or +1.3%.

At their meeting pm 31 January 2025, the Board of Directors has decided on the presented financial statements. It recommends the following appropriation of profit and distributions :

The Bank expresses its gratitude to its loyal clientèle for their trust. It is committed to continuously improving the quality of its services.

On behalf of the Board of Directors: A. Geissbühler, Chairman
On behalf of the Executive Board: D. Wenger, Chairman