BCV General Meeting of Shareholders

FOCUS ON THE NEW LAW

The General Meeting of Shareholders of BCV, held today at the Palais de Beaulieu in Lausanne, was attended by 1327 shareholders representing 63.5 % of the capital. The shareholders present approved the financial statements for fiscal 2000 and the distribution of profits proposed by the Board of Directors. Out of the profits appearing on the balance sheet, namely 157 million francs (+20% over 1999), 82 million will serve to pay an unchanged dividend of Fr 17.50 per share with a par value of CHF 125.- on a capital of 587.45 million francs. In order to reinforce the shareholders' equity, the allocation to reserves has been increased to 74 million, versus 48 million last year.

The Chairman of the Board of Directors, Mr Jacques Treyvaud, focused his address on the new law governing BCV, passed in March by the Cantonal Parliament, which is to be put to a popular vote. He began by pointing out the necessities to which this change in the law is a response. The aims are to bring the status of BCV into line with the Federal Law on Banks, as revised in 1999, to provide it with a more flexible legal framework to allow it to adapt quickly to the constant changes in its environment, to give its governing bodies a structure in keeping with current needs, to protect it against hostile takeovers and to clearly delimit the financial commitment of the Canton. In response to the arguments of the law's opponents, he emphasised that the new law reinforces BCV's mission by specifying its contribution to the development of the cantonal economy and implies no change in either BCV's strategy or its role as a neighbourhood bank.

In the same vein, having expressed his regret at the way the promoters of the referendum had sought to impute to the bank intentions it did not have, Mr Gilbert Duchoud, President of the Executive Board, gave an overview of fiscal 2000, which had ended on very satisfactory operating results. As regards the outlooks for the current year, he considers that gross profit should remain fairly stable. After two years of strong income increases, the growth trend cannot but moderate in the current economic and financial context. However, the bank must increase its staff and invest to ensure its future growth. In this connection, Mr Duchoud sees the medium-term trend with optimism, given BCV's very solid position in the canton and the success of its diversification policy.

Finally, a tribute was paid to Mr Jacques Treyvaud, who is retiring after an exceptional career of 40 years at the service of BCV, as well as to Messrs Jean-Claude Grangier, Deputy President and Claude Courvoisier, member of the Executive Board, who have chosen to retire. The Assembly also took its leave, with thanks, of Messrs Jean-Claude Ansermoz, Michel Mouquin and Bernard Schenk, who have come to the end of their terms as members of the Board.

Lausanne, 21 June 2001