Berner Kantonalbank Secures Long-Term Funding with New Bond Issue

Berner Kantonalbank strengthens liquidity with a new bond, reports solid 2025 results with a CET1 ratio of 18.3%, and sees shares hit a 52-week high.

The Berner Kantonalbank (BEKB) has moved to strategically reinforce its financial position, taking advantage of current market conditions. The institution has successfully placed a floating-rate bond worth 160 million Swiss francs, a move that broadens its refinancing sources and secures additional liquidity through 2029.

Financial Strength and Strategic Shift

Despite a net profit of 175.4 million francs for 2025, which came in approximately 2.9 percent below the prior year's result, the bank's balance sheet remains solid. Its capital ratios continue to sit comfortably above the minimum regulatory requirements, highlighting the institution's financial stability.

Key operational metrics from the last fiscal year include:
- Common Equity Tier 1 (CET1) ratio: 18.3 percent
- Net new money inflow: 0.7 billion francs
- Assets under management: 45.3 billion francs
- Mortgage and customer loans: 31.9 billion francs

These figures provide a foundation for the bank's strategy to diversify its revenue streams beyond traditional interest income and to further develop its investment business.

Bond Details and Revenue Diversification

The newly issued bond carries an interest rate pegged to the SARON reference rate, plus an annual margin of 0.5 percent. This financing step occurs as BEKB advances the transformation of its earnings structure. While the classic interest rate segment faces margin pressure, the bank's commission and services business grew by 9.5 percent to 126 million francs in the previous financial year.

Share Price Momentum and Technical Indicators

Market confidence is clearly reflected in the bank's equity performance. BEKB shares reached a new 52-week high yesterday, trading at 397.00 CHF. The stock has seen significant strength lately, advancing more than 16 percent over the past 30 trading days. However, technical indicators suggest the rally may be extended; the Relative Strength Index (RSI) currently reads 88.5, signaling a technically overbought condition.

Looking ahead, the bank's ordinary General Meeting is scheduled for May 12, 2026. During this event, BEKB's board will determine the specific allocation of the retained earnings and outline the future dividend policy for shareholders.