Following a very challenging year for the Bank, marked by a change in ownership, we are pleased to report that the Bank has successfully managed the restart of the business in the Commodity Trade Finance (CTF). On the basis of its strong client relationships the Bank has restructured its legacy portfolio successfully and continues to grow its commodity lending portfolio by financing of new transactions for its clients. Increased business activity allowed us to close the period with Net Profit of CHF 0.6m compared to a total loss of CHF 91.8m in 2022. With its capital over CHF 500m, the Bank remains well capitalized comfortably exceeding all regulatory ratios.

Market developments / Business review

In 1H 2023, the Bank resumed its operations with a renewed focus on establishing traditional transactional trade finance business. It initiated new short-term, revolving secured, and self-liquidating credit facilities for its core group of Swiss clients. Our clients are involved in trading three groups of commodities: oil and oil products, metals and coal, and soft commodities and fertilizers. The Bank was predominantly involved in financing Africa to Europe, Asia to Europe and Europe to Americas flows refraining from financing any flows originating in Russia or involving Russia-linked traders. The commodities market remained strong even though we see a continued decline in activities compared to 2022. The Bank mainly uses CHF and EUR as their currencies of choice, while a small USD exposure remains on its books. Efforts are underway to enhance our USD capabilities, with the goal of offering comprehensive USD services by 1H 2024.

The commodity finance market has sustained its strength, notably witnessing a robust demand for payment and financing services, particularly from SME traders. This demand consistently surpasses the available supply. We anticipate this trend will persist in the near future, affording TradeXBank ongoing opportunities for growth in its current market position. As such, we are actively focused on enhancing our teams on the Commodity Trade Finance side with seasoned industry experts.

Christian Lüscher
Chairman of the Board

Igor Ukrasin
Chief Executive Officer