The BCV in the first half of 2001

SATISFACTORY DEVELOPMENT DESPITE A DIFFICULT CONTEXT

For the first six months of the year, the income statement of the BCV (parent company) is showing gross profit up by almost 12% compared with the same period last year, while the balance sheet total has remained relatively stable.

The details of the income statement at 30 June 2001 show an increase in net revenues from interest operations (+8.5% to CHF 210 million), which reflects a further improvement of the margin in percentage terms. The result of commission operations was a slight increase overall (+0.5% to CHF 115.4 million), despite the stock market slump of the 1st half year; the limited fall in commissions from asset management activities (-10.4% to CHF 121.8 million) was in fact compensated for by the strong growth of commissions on credit operations (+35.6% to CHF 29.3 million), linked with the development of documentary business, and a considerable reduction of commission expenses (-14.1% to CHF 43.3 million). The results of trading operations were much weaker (-82.5% to CHF 10.1 million) because of the fall in share portfolios in the wake of world stock markets, and also the decline in earnings from transactions in foreign currency and derivatives. In contrast, the other ordinary results showed a strong advance (+165.5% to CHF 130.9 million), mainly because of the sale of the non-hedged share of the holding in Orange Communication.

Total earnings were thus CHF 466.4 million, exceeding by CHF 51 million, or 12.3%, the figure for the first half of 2000. The increase in operating costs (+12.7% to CHF 240.9 million) was a little stronger than last year, because of the increase in staff. Staff costs grew in fact by 16.3% over the first six months of 2000, and other operating costs by 7%. Gross profit thus increased by CHF 23.8 million, or 11.8%, to reach CHF 225. 5 million.

The balance sheet total was CHF 36.86 billion on 30 June 2001. It fell by CHF 413 million or 1.1% compared with the figure on 31 December 2000, following a decline of over CHF 1 billion in interbank transactions. On the assets side, loans to clients were CHF 26.31 billion, i.e. CHF 408 million, or 1.6%, more than six months earlier. The rise was slightly higher in the area of commercial credits (+2.3% to CHF 10.87 billion) than in the mortgage sector (+1% to CHF 15.45 billion). On the liabilities side, customer deposits and borrowings were CHF 27.36 billion - an advance of CHF 244 million, or 0.9%, over the last six months. The general trends were unchanged, with a decline in savings (-2.6% to CHF 8.24 billion) and medium-term notes (-8.3% to CHF 588 million) that was more than compensated for by the rise in demand and term deposits (+4% to CHF 8.58 billion) and in long-term borrowings (+1.9% to CHF 9.95 billion).

The consolidated balance sheet and income statement of the BCV Group will be published on 17 August. The results will also be positive, but slightly less so because of the preponderance of asset management activities at affiliate companies.

Lausanne, 20 July 2001