BCV Group 9M 2011 revenues and results on firm track

BCV Group reported very solid 9M 2011 financial results, in line with the trend observed in recent reporting periods. Revenues increased 1% to CHF 760m* and business volumes continued to expand. Despite the uncertain economic climate and financial market downturn, operating profit declined only 3%.

Revenues up by 1%

Total revenues at 30 September were CHF 760m, a 1% year-on-year improvement. Interest income was stable at CHF 384m. Fee and commission income rose 1% to CHF 266m, with a CHF 15m revenue stream from Banque Franck Galland & Cie SA offsetting the negative impact of financial market upsets. Trading income jumped 18% to CHF 86m as a result of strong customer-driven forex activities. Other ordinary income fell CHF 24m (–26%) due to a base effect relating to non-recurring property sales in 2010. Banque Franck Galland & Cie SA, which became part of BCV Group on 8 February 2011, contributed CHF 19m to total revenues.

Operating profit off 3% to CHF 360m

Total operating expenses grew 4% (+CHF 17m) to CHF 400m, primarily due to the consolidation of Banque Franck Galland & Cie SA (+CHF 14m). Personnel costs increased 6% to CHF 253m, while other operating expenses were up 3% to CHF 147m. Operating profit contracted slightly to CHF 360m (–3%).

Rise in customer-driven business volumes

Total assets expanded 8% to CHF 38.4bn. Mortgage lending rose 7% (+CHF 1.4bn) and totaled CHF 21.6bn at 30 September. Other loans climbed 19% to CHF 6.3bn. Half of this increase reflects short-term cash positions with strong investment-grade non-bank counterparties within Switzerland.

On the liabilities side, the expansion in customer savings and investment accounts continued, with a 5% rise (+CHF 571m) to CHF 11.5bn. Other customer accounts grew 8% (+CHF 1.1bn) to CHF 14.0bn.

Assets under management down slightly

Group assets under management edged down 0.8% (–CHF 571m) to CHF 75.3bn due to financial market declines. The integration of Banque Franck Galland & Cie SA had a positive effect on AuM of CHF 3bn. Net new funds amounted to CHF 600m.

Stephan Bachmann’s term renewed

The Cantonal Government has renewed the term of Stephan Bachmann, Vice Chairman of the Board of Directors, from 1 January 2012 to 31 December 2015.

Moody’s raises BCV’s stand-alone rating and Standard & Poor's confirms its positive outlook

Rating agency Moody's has raised BCV’s Bank Financial Strength Rating to the long-term equivalent of A3 from Baa1, emphasizing BCV’s well-established franchise in Vaud Canton and in Switzerland, strong capitalization, and sound liquidity and funding profile. Moody’s also confirmed BCV’s long-term rating of A1 with a stable outlook. Standard & Poor’s likewise confirmed BCV’s AA– rating with a positive outlook.

Outlook

These solid results in a challenging market environment attest to the Bank’s strong franchise. Barring a significant deterioration in the financial markets and the overall economic climate, business development for the full year is expected to trend along the same lines as in the first nine months of the year.

Lausanne, Switzerland, 10 November 2011

* Unaudited figures

Contact(s)

Christian Jacot-Descombes, Press Officer
Phone + 41 21 212 28 61
E-mail

Gregory Duong, Investor Relations Officer
Phone + 41 21 212 20 71
E-mail

This press release is being issued outside the trading hours of the SIX, Swiss Exchange in order to comply with the principles of ad hoc disclosure pursuant to the SIX listing rules.

The above text is a translation of the original French document; only the French version is authoritative.