Dear Clients
Not without reason does «From Basel. For Basel.» represent where the vision of Basler Kantonalbank begins. Ever since our foundation in 1899, we have felt a strong connection with the people and the economy of the Basel region. And this proximity was of particular importance in the crisis year 2020. We cannot remember any other recent event that changed our lives as suddenly and as radically as the global corona pandemic.
The pandemic has also had a strong impact on our banking operations and the financial markets, and reduced our business results, especially in the first half of 2020. Thanks to a strong recovery in the second half of the year, we were nonetheless able to achieve a consolidated profit of CHF 108.3 million, only slightly below the previous year’s result. The increase in Bank Cler’s profit and the increased use of the joint group infrastructure also contributed significantly to this encouraging result.
We would like to thank you, esteemed clients, for your loyalty and trust. And to thank our employees for their tireless commitment and their agility. Both were crucial for the seamless functioning of the Bank and the close support of our clients through the crisis, given the fact that within a matter of days around 70% of our employees switched to the home office. Thus our branches were open without interruption throughout the year, in compliance with protection concepts and the hygiene regulations of the Swiss Confederation. Because the protection of our employees and our clients has top priority, most meetings took place over the phone or by video. With these, as well as with regular situation appraisals by our Head of Asset Management, we offered investors orientation on the stock and financial markets during the turbulent weeks.
In 2020, we were not only able to provide close support to our private clients, but were also able to send a clear signal of our solidarity with corporate clients. Group BKB provided rapid and uncomplicated assistance to larger companies, SMEs, tradespeople and self-employed persons in various ways to avert impending liquidity bottlenecks. Throughout the Group, more than 1,500 limits amounting to around CHF 160 million were granted for bridging loans to SMEs under federal and cantonal COVID-19 programmes. Since December 2020, there has also been a guarantee programme for technology start-ups run by the Canton of Basel-Stadt, with Basler Kantonalbank acting as lender. We also have positive memories of the Support Your Locals campaign, which we supported with a large competition in the summer. And last but not least, as a ‘consolation prize’ for the cancellation of the PS Assembly 2021, we will support Basel’s gastronomy with around CHF 750,000.
Despite all the challenges in 2020, we have vigorously developed our banking business in line with our strategic priorities. With the continuous expansion of digital services, Bank Cler in particular gained access to new client groups with the Zak smartphone app – there are now around 40,000 users. The Group was also able to grow with existing clients. The Group’s own investment solutions are in great demand. The volume rose in 2020 by a further 25% and is now over CHF 2 billion. Last year, 75% of newly invested funds flowed into the sustainable variants, showing that sustainability continues to gain importance for our clients.
Our business model is built on security and stability. This approach proved itself in 2020 and was a central prerequisite both for supporting our clients and for implementing our growth strategy. Thanks to its capital strength, high liquidity and strong market position, Basler Kantonalbank is one of the strongest banks in Switzerland. This was also confirmed by Standard & Poor’s in December 2020 with the renewal of the AA+ rating – the second-best rating in existence. We are also delighted to be able to continue to provide strong support to the Canton of Basel-Stadt in the crisis year of 2021, with an unchanged high total contribution of CHF 77.0 million. The dividend of CHF 3.10 (gross) per BKB participation certificate also remains stable.
In 2021, we aim to further improve the way we interact with you, our valued clients. We will advise you even more consistently based on your goals. At the same time, we aim to become more efficient and faster in our core processes, such as mortgage origination, by using modern technologies. And we will focus even more on sustainability in our operations and offerings, as well as on the further development of our employees.
We now invite you to study our Annual Report 2020. You will find all the important information about the past business year. Of course, we are always open to your suggestions, praise and criticism.
We wish you much confidence and a speedy return to the normality we all long for. Above all, we wish you and your loved ones good health.
Kind regards
Basler Kantonalbank
Adrian Bult
Chair of the Bank Council
Basil Heeb
CEO