Overview

Our business strategy is guided by our ultimate goal of creating value for shareholders, clients and employees. Our business model is that of a universal bank with solid local roots, and we believe that this is the best way to ensure profitable growth going forward. Our operations are focused on four core businesses – Retail Banking, Private Banking, Corporate Banking, and Trading – but we remain active in select niche activities offering significant growth and profitability potential. Our risk profile is moderate, and we take an active approach to equity capital management.

In 2019, we defined a new strategic phase that builds on those we have been implementing for more than ten years. This next phase aims to maintain the positive trend that the Bank’s business lines have been experiencing over the past few years. It is also designed to position the Bank to respond to the main challenges we will face in the coming years, such as heightened competition, persistently low interest rates, advancements in digital technology, and ever-changing customer needs.

For the business lines, we are targeting:

• Above-market growth in asset management, SMEs, and onshore private banking;
• At least market growth in retail banking;
• A focus on the profitability of our commodities trade finance and large corporates businesses;
• Continued development of our other business lines.

We have identified several strategic focus areas that will enable us to meet future challenges. These goals include:

• Continuing to improve our service quality along the entire value chain to create an even better customer experience;
• Enhancing our distribution channels (branches, digital services, and call centers) to give customers an integrated multichannel experience;
• Capturing more of the cross-selling potential inherent in our universal bank business model;
• Implementing operational improvements through targeted measures;
• Increasing our attractiveness as an employer and fostering continuous skills development among our employees;
• Sharpening our focus on corporate social responsibility (CSR) measures, including a wider range of sustainable banking products, socially responsible investment options, and mortgage solutions.

The Group aims to achieve sustainable growth, with revenues and operating profit trending along the same lines as in recent years. We are targeting a cost/income ratio of 55% to 57% and an ROE (based on current shareholders' equity) of 10% to 12%. We consider a CET1 ratio of 13% to be a minimum threshold.

In line with the approach adopted over the last 15 years, BCV decided in 2022 to extend its dividend policy for another five years. And in view of our record financial results in 2023, we also increased our dividend target range. Beginning with the 2023 reporting period, the Bank intends to pay an ordinary dividend of CHF 4.30 to 4.70 per share, barring significant changes in the economic or regulatory environment or in the Bank’s situation. 

Banque Cantonale Vaudoise (BCV) was founded on 19 December 1845 by the Vaud Cantonal Parliament.

The Canton of Vaud is BCV’s majority shareholder, with 66.95% of the Bank’s share capital. BCV is listed in the Vaud Commercial Register and is subject to all applicable Swiss legislation. Its legal status is defined in the Cantonal Act Governing the Organization of Banque Cantonale Vaudoise (LBCV) of 20 June 1995, as amended on 25 June 2002, 30 January 2007 and 2 March 2010.

BCV’s commitments are not underwritten by the Canton. However, customer deposits are covered by a nationwide system of investor protection concerning Swiss banks and securities dealers. This system insures deposits of up to CHF 100,000 per person and per bank.