BCV Group delivered excellent H1 results, with revenues up 11% to CHF 582m, operating profit up 22% to CHF 276m, and net profit up 22% to CHF 240m.*
Revenues up 11% to CHF 582m
Total revenues were up 11% year on year to CHF 582m. Net interest income grew 23% to CHF 290m on the steep rise in interest rates. Fee and commission income declined 6% to CHF 169m, mainly reflecting lower customer activity on the financial markets and a reduction in trade finance exposures due to the current geopolitical situation. Net trading income climbed 26% to CHF 105m, mainly on active balance-sheet management. Other ordinary income totaled CHF 19m (–30%).
Operating profit up 22% to CHF 276m
Operating expenses were up 3% to CHF 269m. Personnel costs were up 2% to CHF 181m. Other operating expenses rose 6% to CHF 88m in an inflationary environment. Depreciation and amortization was almost stable (+1%) at CHF 36m. Operating profit was up 22% to CHF 276m.
Net profit up 22% to CHF 240m
The Bank recorded a tax expense of CHF 37m. Net profit was up 22% to CHF 240m. That corresponds to an ROE of 12.9% – one of the highest in BCV’s peer group.
Total assets stable
Total assets amounted to CHF 58.9bn, edging down 1% (CHF 0.5bn) from the end-2022 figure. Cash and cash equivalents, which are mainly held as SNB sight deposits, totaled CHF 12.8bn (–1%). Mortgage lending expanded 2%, or CHF 754m, to CHF 31.2bn in a softening real-estate market. Other loans fell 2% to CHF 6.1bn, as increased corporate lending only partially offset Covid-19 loan reimbursements and the reduction in trade finance activity.
On the liabilities side, customer deposits edged down 2% to CHF 37.5bn, on lower deposits from large corporates and institutional clients.
Net fund inflows
The Group's assets under management rose 3% to CHF 112.3bn. Net new money totaled CHF 0.7bn (+1%) and came from individuals in Switzerland, SMEs, and institutional clients. Investment performance drove AuM up by CHF 2.7bn (+2%).
CHF 327m paid out to shareholders
In accordance with its dividend policy, BCV distributed CHF 3.80 per share to its shareholders in May, for a total payout of CHF 327m. The dividend was up CHF 0.10 per share and represents a total dividend yield of 4.3% based on BCV’s 2022 closing share price.
Solid financial position
The Bank’s CET1 ratio stood at 17.5% at 30 June 2023 and shareholders’ equity amounted to CHF 3.6bn, attesting to BCV’s financial solidity. Standard & Poor's has once again reaffirmed its AA rating for BCV with a stable outlook, and Moody's has maintained its Aa2 rating, also with a stable outlook.
Very solid ESG ratings
BCV’s longstanding commitment to sustainable economic development is reflected in the Bank’s ESG scores. MSCI has given the Bank an ESG rating of AA, the agency’s second-highest score, placing BCV in the “Leader” category. Ethos has reaffirmed the Bank’s A– rating, the second-highest score. In addition, CDP included BCV in its “Leadership” category in 2022 based on the Bank’s rating of A–, which is also the organization’s second-highest score.
Changes to the Board of Directors
Peter Ochsner, a member of BCV’s Board of Directors appointed by the Vaud Cantonal Government and the chair of the Audit and Risk Committee, stepped down from the Board on 30 June 2023 after seven years of service. The Bank would like to express its warmest thanks to Mr. Ochsner for his significant contributions as a member of the Board. On 1 July 2023, Mr. Ochsner was succeeded on the Board and the Audit and Risk Committee by Stefan Fuchs, who was appointed by the Vaud Cantonal Government. Mr. Fuchs worked for over 35 years first for the auditing and consulting firm Andersen and then for Ernst & Young (EY) following the merger of those two firms in 2002. Over the course of his career, Mr. Fuchs has acquired extensive experience and has served in various audit-related executive functions.
Outlook
Barring a significant change in the financial markets or the overall economic situation, FY 2023 business development is expected to trend along the same lines as in previous reporting periods.
Lausanne, Switzerland, 17 August 2023
*Unaudited figures
2024 calendar
8 February Full-year 2023 results
25 March Publication of the 2023 Annual Report (on www.bcv.ch)
25 April Annual Shareholders’ Meeting in Lausanne
22 August Half-year 2024 results
Banque Cantonale Vaudoise – Contacts
Daniel Herrera,
Communications Director
Tel.: +41 21 212 28 61
Email: daniel.herrera@bcv.ch
Gregory Duong, Investor Relations
Tel.: +41 21 212 20 71
Email: gregory.duong@bcv.ch
The above text is a translation of the original French document; only the French text is authoritative.
