PostFinance, one of Switzerland’s financial institution and a subsidiary of Swiss Post, released its 2024 annual results, shedding light on a year of challenges and positive developments.
With 2.5 million customers and a reputation for stability, the bank faced a volatile economic landscape marked by shifting interest rates and evolving customer behaviors.
Despite these challenges, PostFinance says that it demonstrated resilience, achieving an operating profit (EBIT) of CHF 301 million and a net profit of CHF 240 million, while continuing to innovate with services like instant payments and cryptocurrency offerings.
The 2024 financial performance reflects a significant dip from the previous year’s EBIT of CHF 403 million, primarily due to a CHF 162 million decline in net interest income.
This drop stemmed from the Swiss National Bank’s (SNB) successive policy rate cuts—from 1.75% to 1.25%—which then squeezed margins on PostFinance’s financial investments.
A CHF 25 million value adjustment on an investment portfolio item further pressured results.
However, the bank offset some losses with a 6.6% rise in service as well as commission income (CHF 11 million) and gains in trading portfolio assets, buoyed by its crypto services launched in February 2024.
PostFinance’s customer base remained robust at 2.47 million, though it saw a net loss of 11,000 accounts, reflecting shifts in banking habits.
Customer assets grew modestly by CHF 1 billion to CHF 96 billion, bolstered by positive stock market trends and higher retirement savings account balances.
The banking institution’s equity stood at CHF 5.075 billion, down slightly due to a CHF 250 million dividend payout to Swiss Post, yet it maintained a CET1 capital ratio of 20.9%, signaling financial strength amid regulatory oversight by FINMA.
Innovation remained a cornerstone of PostFinance’s strategy.
In August 2024, it became one of the first major Swiss banks to offer instant payment receipt, enabling real-time transfers 24/7—a move aligned with the SNB’s push for modern payment systems.
By autumn, plans were underway to introduce instant payment sending, prioritizing security and customer value.
Meanwhile, the February launch of crypto trading and custody services marked a milestone, making PostFinance the “first” systemically important Swiss bank to integrate cryptocurrencies into its e-finance and mobile app platforms.
Offering 11 cryptocurrencies with a low entry threshold of USD 50, this service targets younger generations, with Generation Y forming the largest user segment.
The bank’s crypto push earned industry recognition.
A study commissioned with Lucerne University underscored trust, user-friendliness, and low fees as key drivers for crypto investors—principles PostFinance claims that it embedded in its platform.
Additionally, its modern CH-DD direct debit scheme, spared from a 2028 phase-out affecting other systems, continues to facilitate payments in Swiss francs and euros.
Looking ahead, PostFinance faces a volatile interest rate environment and competitive pressures.
Interim CEO Kurt Fuchs, who assumed the role in March 2024 following Hansruedi Köng’s retirement, emphasized adaptability.
With a new brand identity rolled out in 2024, PostFinance is positioning itself as a progressive institution.
While 2024 tested its profitability, its focus on supporting digital innovation and customer trust signals a promising path forward in Switzerland’s fast-evolving financial landscape.