BCV Group posted strong results in the first half of 2012. Despite the challenging market environment, revenues rose 1% to CHF508m. Operating profit grew by 4% to CHF 242m and net profit rose by 2% to CHF157m.*
Revenues up in a challenging market environment
Total revenues were up 1% year-on-year to CHF 508m. Interest income rose 2% to CHF 265m despite the continuing low-interest-rate environment, while fee and commission income was stable at CHF 173m. Trading income increased 8% to CHF 56m, reflecting strong customer-driven forex and structured product activities.
Operating profit increases 4% to CHF242m
Total operating expenses fell by 1% to CHF 266m. Personnel costs dropped 1% to CHF 170m and other operating expenses were down 2% to CHF 96m. Underpinned by this solid cost control and top-line growth, operating profit rose 4% to CHF 242m.
Net profit rises 2%
Depreciation and write-offs increased 5% to CHF 45m, and value adjustments, provisions and losses remained low at CHF 1m. Extraordinary income amounted to CHF 6m. As a result, net profit grew 2% to CHF 157m. The cost/income ratio improved from 62% to 61%.
Growth in customer-driven business volumes
Total assets expanded 5% to CHF 39.8bn, mainly reflecting the rise in liquid assets deposited with the Bank. Mortgage lending was up 2% (+CHF 430m) to CHF 22.5bn. This increase is entirely in line with the full-year growth target of 4% announced at the beginning of the year. Other loans fell 6% to CHF 5.5bn.
On the liabilities side, the expansion in customer savings and investment accounts continued, with a 4% rise (+CHF 469m) to CHF 12.1bn. Other customer accounts grew by 5% (+CHF 697m) to CHF 14.8bn.
Capital ratios remained at comfortable levels: the FINMA capital ratio was 13.3% and the BIS Tier 1 ratio 16.8%. These ratios attest to the Bank’s financial solidity.
Rise in AuM
Group assets under management (AuM) were up 4% (+CHF 2.9bn) to CHF 80.0bn. Net new money amounted to CHF 372m for the period. This figure is the result of two contrasting factors. On one hand, the private-client, SME and pension-fund segments continued to bring in net new money (+CHF 1.0bn). On the other, short-term deposits by large corporates contracted (–CHF 0.6bn) following the Bank’s decision to keep deposit interest rates low in an environment marked by plentiful liquidity.
CHF275m paid out to shareholders
In accordance with the Bank’s capital-management strategy and the motions approved at the Annual Shareholders’ Meeting, BCV returned CHF 275m to its shareholders in May. As the Bank’s majority shareholder, the Canton of Vaud received an amount of CHF 185m, in addition to CHF 65m in cantonal and municipal taxes for the 2011 financial year.
S&P rating confirmed
S&P confirmed BCV’s AA rating in a press release published on 3 July. BCV thus remains one of a select group of banks worldwide to be rated AA or above. S&P also announced in its 3 July press release that it would be paying particular attention to the Swiss real-estate market and had lowered its outlook on BCV and 8 other Swiss banks operating in this market from stable to negative.
MSCI Switzerland listing
Following its inclusion in the STOXX Europe 600 index at the end of 2011, the BCV share was added to the MSCI Switzerland index on 1 June 2012. This index tracks the performance of Switzerland’s forty largest companies by market capitalization.
These solid results in a still uncertain market environment reflect BCV’s strong customer franchise and its solid positioning in a dynamic local economy. Barring a significant deterioration in the financial markets and the overall economic situation, business development in H2 2012 is expected to trend along the same lines as in the first half.
Lausanne, Switzerland, 16 August 2012
* All figures are unaudited.
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The above text is a translation of the original French document; only the French version is authoritative.
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