BCV Group delivered solid H1 results despite the ongoing negative-interest-rate environment.Revenues and operating profit were broadly stable, at CHF 493m (‑1%) and CHF 200m (‑2%), respectively.Net profit rose 15% to CHF 188m.*
Total BCV Group revenues were broadly stable year on year at CHF 493m (-1%). Net interest income came in at CHF 243m, off 2%. Fee and commission income increased 1% to CHF 159m. Net trading income, which derives mainly from customer-driven trading activities, was down 5% on the year-earlier figure but nevertheless came in at a solid CHF 65m. Other ordinary income totaled CHF 25m (+14%).
Operating profit at CHF 200m
Operating expenses declined 1% to CHF 254m. Personnel costs and other operating expenses were down slightly year on year, at CHF 169m and CHF 85m, respectively. Depreciation and amortization was flat at CHF 36m. Operating profit amounted to CHF 200m (-2%).
Net profit up 15% to CHF 188m
As previously announced, extraordinary income was driven up to CHF 34m by a non-core real-estate disposal. Net profit consequently rose 15% to CHF 188m.
Balance sheet up slightly
Total assets expanded 1% to CHF 45.9bn. Cash and cash equivalents, which mainly comprise SNB deposits, totaled CHF 7.4bn (-8%). Mortgage lending rose 1%, or CHF 300m, to CHF 25.7bn. Other loans increased 12% to CHF 5.4bn driven by growth in corporate banking volumes across all segments.
On the liabilities side, customer deposits grew 2%, or CHF 519m, to CHF 31.0bn.
AuM rises 2%
The Group's assets under management expanded 2% to CHF 87.9bn, and net new money totaled CHF 1.8bn. The increase was driven mainly by strong growth in assets from personal banking, SME, and institutional clients.
CHF 284m paid out to shareholders
In accordance with its distribution policy, BCV returned CHF 33 per share to its shareholders in May, for a total payout of CHF 284m. This payout is unchanged from the prior year and represents a dividend yield of 4.5% based on BCV’s 2017 closing share price.
Solid financial position
The Bank’s total capital ratio was 16.5% and shareholders’ equity amounted to CHF 3.4bn, attesting to BCV’s financial solidity. In June, rating agency Moody’s reaffirmed the Aa2 rating (with a stable outlook) assigned to BCV in 2015.
Barring a significant deterioration in the financial markets and/or the overall economic situation, FY 2018 results are expected to trend along the same lines as in prior years.
Lausanne, Switzerland, 23 August 2018
21 February Full-year 2018 results
2 April Publication of the 2018 Annual Report (on www.bcv.ch)
2 May Annual Shareholders’ Meeting in Lausanne
22 August Half-year 2019 results
Christian Jacot-Descombes, Press Officer
Phone: +41 79 816 99 30
Gregory Duong, Investor Relations
Phone: +41 21 212 20 71
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