At the end of 2008, we modified our strategy in order to focus our efforts on our front lines and generate organic growth in our core markets. Management decided that the best way to ensure profitable growth going forward is the business model of a universal bank with solid local roots. Through our strategy, BCVPlus, we intend to strengthen our position as a full-service bank in the Vaud region and be recognized as a leading financial institution in Switzerland, particularly for private and institutional asset management.

With BCVPlus, we are targeting:

• renewed impetus in retail banking, particularly mortgage lending, by improving front-line execution and overall sales-support efficiency while tapping into the potential inherent in our large client base;
• growth in private wealth management, primarily in Vaud, and institutional asset management both within Vaud Canton and elsewhere in Switzerland;
• a greater role for SME-related activities;
• enhanced volumes and profitability in the trade finance and large corporates business lines, in accordance with the Bank’s risk profile;
• very limited risk-taking in trading activities, which are centered on customer-driven business volumes.

Management is convinced that quality of execution is a key factor in setting ourselves apart from the competition and driving our success. With this in mind, we launched a series of internal initiatives in 2009 to simplify processes, develop our employees’ skill sets, improve customer service and revitalize our sales and marketing approach. These initiatives continue.

The Group aims to achieve sustainable growth, with revenues expanding by 4-5% and operating profit by 5-8% per year on average. The long-term targets are 13-14% for ROE, 57-59% for cost/income and 13% for the BIS Tier 1 capital ratio. These strategic objectives should be viewed from a multi-year perspective.

In the coming years, the Bank intends to pay a stable ordinary dividend, which may rise gradually within a range of CHF 20 to CHF 25 per share, depending on business growth. Furthermore, it will optimize equity by making an additional annual distribution of CHF 10 per share. As announced at the end of 2008, the Bank plans to maintain these distribution levels for five to six years counting from 2008, barring any significant changes in the economic or regulatory environment. Our business strategy is guided by our ultimate goal of creating value for shareholders, clients and employees.