BCV Group results at 30 September 2006: gross profit up 13%

Gross profit rose 13%* year-on-year thanks to continued revenue growth and tight cost control.

Revenues up 6%
Total revenues in the first nine months of 2006 climbed 6% (YoY) to CHF 823m. This confirms the trend observed in H1, when revenues rose 7% excluding extraordinary, non-recurrent items. All of BCV’s core revenue streams contributed to this improvement. In a highly competitive environment, net interest income increased 5% to CHF 359m. Fee and commission income grew 9% to CHF 264m thanks partly to favorable stockmarket conditions. Trading income edged up 1% to CHF 78m. Other ordinary income climbed 6% to CHF 121m.

Gross profit up 13%
Total operating expenses (+0.2% to CHF 418m) remained stable relative to the first nine months of 2005, despite costs associated with the growth project whose implementation began in early 2006. Personnel costs showed a slight increase of 2.6% to CHF 280m, while other operating expenses declined (-4.5% to CHF 139m). This stable trend reflects the Group's commitment to maintaining a firm and lasting grip on costs. Gross profit rose 13% to CHF 405m thanks to revenue growth and effective cost control. These results are in line with Management's guidance, which calls for continuing earnings growth in 2006 but at a slower pace than in 2005.

Growth in total assets and AuM
Total assets stood at CHF 37.4bn at 30 September, up 7% compared with end-2005. This increase was driven mainly by growth in trading activities and mortgage business. The mortgage portfolio grew by CHF 484m. Excluding around CHF 160m of reductions in the portfolio of impaired mortgage loans, new mortgage loans amounted to more than CHF 640m. Commercial lending declined by CHF 447m, owing mainly to the decrease in impaired loans (CHF 280m). Rising stockmarkets drove a CHF 1.1bn increase in "Other assets", reflecting higher replacement values for derivative financial instruments. On the liabilities side, savings deposits and other funds due to customers were up 3% to CHF 18.5bn. Mirroring developments on the assets side, the item “Other liabilities” registered an increase of CHF 1.5bn as a result of rises in the replacement values of derivative instruments.

The Group's assets under management grew by 6.4% to CHF 76.4bn, with net new funds coming in at CHF 952m.

The Bank's new look
In the third quarter, BCV opened a branch office in Prilly as part of its CroisSens project. This new branch office projects the personal service and professionalism that underpin the Bank's new corporate identity and that will be integrated into all BCV offices by the end of 2008. New branches will also be opened in Cugy in December and in the Flon neighborhood of Lausanne in early 2007.

Favorable outlook
Barring any major changes in financial market trends and given the Group's good business performance in the first nine months of 2006, Management confirms its guidance of an improvement in both full-year gross profit and net profit compared with the 2005 financial year.

Lausanne, 14 November 2006

* Unaudited figures

Contact(s)

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

Wilhelm Blaeuer, Investor relations
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 entitled "Groupe BCV au 30 septembre 2006: résultat brut en hausse de 13%*.” only the French version is authoritative.