| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 230.11 | -29 |
| Intrinsic value (DCF) | 122.12 | -62 |
| Graham-Dodd Method | 271.23 | -16 |
| Graham Formula | 263.87 | -18 |
Berner Kantonalbank AG (BEKN.SW) is a leading Swiss cantonal bank headquartered in Bern, Switzerland, with a rich history dating back to 1834. As a regional banking powerhouse, it provides a comprehensive suite of financial services, including savings and deposit accounts, mortgages, investment products, asset management, and corporate financing solutions. The bank operates through a network of 60 branches, catering primarily to private individuals and SMEs in the Bern region. With a strong focus on local client relationships, Berner Kantonalbank AG combines traditional Swiss banking stability with modern financial services, making it a trusted institution in Switzerland's competitive banking sector. Its diversified offerings—from pension products to securities trading—position it as a one-stop financial partner. The bank's solid capital base (CHF 6.73 billion in cash and equivalents) and zero debt underscore its conservative yet resilient business model.
Berner Kantonalbank AG presents a stable investment opportunity with its low-risk profile (beta: 0.13) and strong regional positioning. The bank's FY 2024 revenue of CHF 562 million and net income of CHF 180.7 million reflect steady profitability, supported by a robust CHF 420.6 million operating cash flow. A dividend of CHF 10.4 per share enhances its appeal to income-focused investors. However, its regional focus limits growth scalability compared to global peers, and the Swiss banking sector's low-interest-rate environment may pressure margins. The absence of debt is a strength, but investors should monitor regulatory changes in Switzerland's cantonal banking system. With a market cap of CHF 2.32 billion, BEKN.SW suits conservative portfolios seeking exposure to Swiss financials.
Berner Kantonalbank AG competes in Switzerland's crowded regional banking sector, where its cantonal status provides a competitive edge via implicit government backing and strong local brand loyalty. Unlike multinational banks, BEKN.SW's deep regional integration allows tailored services for Bern-based clients, particularly SMEs and private savers. Its zero debt and high liquidity (CHF 6.73 billion cash) position it as a low-risk counterparty, though this conservatism may limit aggressive expansion. The bank's weakness lies in its geographic concentration—60 branches are all in Switzerland—leaving it exposed to domestic economic cycles. Unlike larger rivals, it lacks a global footprint or investment banking arm, capping revenue diversification. However, its asset management and mortgage offerings compete effectively against private banks by combining cantonal trust with competitive pricing. Digitalization remains a challenge; while it offers online services, it lags behind neo-banks in innovation. Its real competitive advantage is its hybrid public-private model, blending private-sector efficiency with state-backed stability.