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Thurgauer Kantonalbank projects lower operating income in 2018 on pension hit

Switzerland-based Thurgauer Kantonalbank projects a fall in operating income for 2018 on the back of a sizable contribution to the corporate pension fund that will increase personnel costs.

The bank set aside CHF11.2 million for staff pensions in 2017, when personnel costs rose 9.7% year over year to CHF113.6 million and total business costs were up 5.2% year over year to CHF168.1 million. Excluding the pension contribution, total costs in 2017 were down 1.8% on the previous year.

As a result, Thurgauer Kantonalbank's operating income fell 5.8% year over year to CHF158.7 million in 2017. Excluding the pension contribution effect, the bank's operating income was 0.8% higher than the result in 2016.

The bank posted a 2.8% year-over-year increase in net profit, which reached CHF129.4 million in 2017. The dividend payout for 2017 will remain unchanged at CHF2.75 per participation certificate.

Thurgauer Kantonalbank, which is two years into its 2020 strategic restructuring, said it is optimistic for business in 2018 overall given the good economy and healthy real estate market.