BCV Group in Q1 2004

BCV Group's Q1 2004 gross profit rose 5.9% compared with the year-earlier period, and stood at CHF 97.6 mn, a performance which provides further proof that BCV Group is on track.

BCV Group's total revenue for the first quarter of the 2004 financial year amounted to CHF 238.1 mn, a 2.5% increase on the year-earlier period.

Interest income fell by only 6.6%, to CHF 101.4 mn, in spite of the strategic withdrawals from ship financing, international trade financing and lending operations outside of Vaud Canton that were initiated in 2003. Commission and fee income rose 14.3% to CHF 77.1 mn, mainly thanks to the positive trend on the financial markets and growth in the Group's wealth-management business. Trading income was also up sharply, to CHF 28.4 mn (a 23.1% YoY increase), while the item "Other ordinary income" fell by 5.9% compared with Q1 2003, and stood at CHF 31.2 mn.

Continuing cost-cutting efforts drove a 2% decline in operating expenses at the parent company. This reduction was offset by increased expenses at some subsidiaries, in line with growth in their business. Overall, the Group's operating expenses were stable compared to the year-earlier period, at CHF 140.5 mn. Gross profit thus stood at 97.6 mn for the quarter, a 5.9% increase on Q1 2003.

Total assets contracted slightly (down 1%) and stood at CHF 33.9 bn. A 2.1 % decline in loans and advances to customers (to CHF 7.2 bn) reflected the implementation of the Bank's strategy. The Group maintained its strong position on the local mortgage-lending market, with business stable at CHF 15.9 bn.

On the liabilities side, a 1.2% increase in customer savings and investment accounts (to CHF 8.8 bn) illustrates the renewed trust of BCV's customer-base. Maturing bonds were redeemed rather than rolled over, as the Bank took advantage of its strong cash position.

BCV's solid Q1 2004 numbers show that recent and on-going efforts are beginning to pay off. Further moves to implement the strategic reduction in the Bank's risk profile should lead to progressively lower provisioning needs, laying the foundation for a continuing uptrend in the Group's financial results in 2004. These positive developments are underpinned by the trust of BCV's customer-base, an uncompromising commitment to the Bank's new strategy and the unstinting efforts of staff.

Lausanne, Switzerland, 28 May 2004

Contact(s)

Daniel Herrera, Head of Communications
Phone +41 844 228 228
E-mail

Wilhelm Blaeuer, Investor relations
Phone + 41 21 212 20 71
E-mail