Strong Q1 07 Results*

BCV Group reported strong financials for the first quarter of 2007 following the record results achieved in 2006. Gross profit in Q1 stood at CHF 158m, a CHF 18m rise (+13%) compared with the same period last year. Revenue growth of 8% was a major factor behind this improvement.

Revenues up

BCV Group's Q1 07 revenues grew by 8% YoY to CHF 305m. Net interest income was up 4% to CHF 124m. Fee and commission income increased by 2% to CHF 94m. Trading income jumped 39% to CHF 30m. Other ordinary income rose 15% to CHF 57m, mainly reflecting non-recurring gains on disposals of financial investments.

Firm grip on costs helps drive increase in gross profit

Gross profit climbed 13% to CHF 158m. This strong increase was the result of revenue growth and effective cost control. Total operating expenses rose by 3% to CHF 147m.

Total assets and business volumes on the rise

For 2007, BCV has adopted the “balance sheet netting” accounting treatment used by most other cantonal banks in Switzerland for the positive and negative replacement values of derivative financial instruments recognized under “Other assets” and “Other liabilities". In order to facilitate comparisons, 2006 figures have been adjusted in line with the new accounting principles. This has resulted in a technical decrease of approximately CHF 3.5bn in total assets at end-2006.

Total assets at 31 March 2007 thus amounted to CHF 34.8bn. This represents a 5.3% rise compared with the adjusted end-2006 figure. The rise mainly reflects growth in lending and trading operations. On the asset side, total loans and advances to customers rose by CHF 146m (+0.7%) to CHF 22bn, despite a CHF 110m reduction in impaired loans. This improvement comprises both mortgage loans (+CHF 106m) and commercial lending (+CHF 40m). On the liabilities side, savings deposits and other funds due to customers rose by CHF 287m (+1.6%). The Group's assets under management grew by CHF 1.9bn (+2.4%) to CHF 82.7bn thanks to net new inflows of CHF 866m and strong financial markets.

Upward guidance on full-year gross profit confirmed

In view of these strong interim financials, Management maintains its previous guidance of an improvement in full-year gross profit.

Lausanne, Switzerland, 15 May 2007

* 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

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