In the first quarter of 2013, BCV Group experienced business growth in line with the trend observed in 2012, with volumes rising slightly. However, interest income was down as a result of the low-interest-rate environment and prudent liquidity management, and this led to a CHF 6m decline in operating profit to CHF 115m.*
Top line challenged by low-interest-rate environment
BCV Group’s Q1 2013 revenues were down 4% year-on-year to CHF 244m. The decline primarily reflected a 7% decrease in interest income to CHF 124m. There were three main reasons for this. The first was the continuing low-interest-rate environment. Second, in order to limit bank-counterparty risk exposure, the Bank placed its liquid assets mainly with the Swiss National Bank. Finally, the strategic voluntary reduction in mortgage lending growth in 2012 weighed on this revenue stream in Q1 2013. Fee and commission income stood at CHF 85m (–3%), while trading income climbed by 11% to CHF 30m thanks in large part to the rebound in structured product issuance. Other ordinary income amounted to CHF 5m
Effective cost control
Total operating expenses fell to CHF 130m. Personnel costs dropped by 2% to CHF 83m, and other operating expenses decreased by 1% to CHF 47m. The decline in revenues was reflected in Q1 operating profit, which was off by 5% at CHF 115m.
Growth in total assets and AuM
Total assets were up 4% to CHF 41.5bn. Mortgage lending grew by 0.8% (+CHF 188m) YTD to CHF 23.1bn, in line with the Bank’s controlled growth target of 4% per year. Other loans remained stable at CHF 5.1bn.
On the liabilities side, savings deposits grew a further 3% (+CHF 318m) to CHF 12.6bn. Other customer accounts advanced 7% (+CHF 1.1bn) to CHF 16.0bn.
The Group's assets under management (AuM) expanded by 6% (+CHF 4.6bn) to CHF 86.4bn. Net new money amounted to CHF 1.3bn for the period.
Shareholders’ Meeting proposal
As previously announced, the Board of Directors will propose an ordinary dividend of CHF 22 as well as a distribution of CHF 10 per share out of paid-in reserves at the Group’s Annual Shareholders’ Meeting being held today in Lausanne. This proposal reflects the Board’s confidence in BCV’s earnings capacity going forward.
Lausanne, Switzerland, 25 April 2013
* unaudited figures
Christian Jacot-Descombes, Press Officer
Phone +41 79 816 99 30
Gregory Duong, Investor Relations Officer
Phone + 41 21 212 20 71
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; only the French version is authoritative.