| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 147.10 | 573 |
| Intrinsic value (DCF) | 9.08 | -58 |
| Graham-Dodd Method | 23.50 | 8 |
| Graham Formula | 8.90 | -59 |
Glarner Kantonalbank is a Swiss regional bank offering a comprehensive suite of banking and financial services to private and corporate clients, primarily in the Canton of Glarus and surrounding regions. Established in 1884 and headquartered in Glarus, Switzerland, the bank provides savings accounts, personal loans, mortgage solutions, investment and asset management, insurance, and pension products. With a strong local presence, Glarner Kantonalbank operates through five branches, a credit factory, and 19 ATMs, ensuring accessibility for its customers. The bank’s focus on personalized financial advisory and digital banking services enhances its competitive edge in the regional banking sector. As part of Switzerland’s robust financial services industry, Glarner Kantonalbank plays a vital role in supporting local businesses and individuals with tailored financial solutions. Its conservative yet customer-centric approach aligns with Switzerland’s reputation for stability and reliability in banking.
Glarner Kantonalbank presents a stable investment opportunity with its strong regional presence and conservative financial management. The bank’s low beta (0.178) indicates lower volatility compared to broader markets, appealing to risk-averse investors. With a market cap of CHF 290.25 million and solid profitability (net income of CHF 24.29 million in FY 2023), the bank demonstrates consistent earnings. Its dividend yield, supported by a CHF 1 per share payout, adds income appeal. However, its regional focus limits growth potential compared to larger Swiss banks, and its high total debt (CHF 3.88 billion) relative to equity warrants caution. Investors should weigh its stability against limited scalability.
Glarner Kantonalbank’s competitive advantage lies in its deep regional roots and personalized service, fostering strong customer loyalty in the Canton of Glarus. Unlike larger Swiss banks, it benefits from local market expertise and lower customer acquisition costs. However, its small scale restricts product diversification and digital innovation compared to global peers. The bank’s conservative risk profile, reflected in its low beta, ensures stability but may limit high-growth opportunities. Its net interest margin is likely pressured by Switzerland’s low-rate environment, though its fee-based services (asset management, insurance) provide diversification. Competitors with broader geographic reach and advanced digital platforms pose a challenge, but Glarner Kantonalbank’s niche focus shields it from direct competition in its core market. Its high debt load, primarily from customer deposits and lending activities, is typical for regional banks but requires prudent liquidity management.