Interview de Pascal Kiener, Président de la Direction générale

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BCV Group H1 2019 operating profit up 5%

BCV Group delivered very solid H1 results despite the ongoing negative-interest-rate environment. Revenues were up 2% to CHF 502m, and operating profit rose 5% to CHF 209m. At CHF 182m, net profit was just 3% off the year-earlier figure despite a CHF 34m non-recurring gain in H1 2018. The effect of this non-recurring gain was mostly offset by higher operating profit and lower tax expense in H1 2019.*

 

Revenues up

Total BCV Group revenues were up 2% year on year to CHF 502m. Net interest income rose 4% to CHF 253m. Fee and commission income increased 1% to CHF 161m. Net trading income, which derives mainly from client forex trading activities, totaled CHF 60m (–9%). Other ordinary income amounted to CHF 28m (+9%).

 

Operating profit at CHF 209m

Operating expenses were stable at CHF 255m. A 1% increase in personnel costs, to CHF 171m, was offset by a 1% reduction in other operating expenses, which stood at CHF 84m. Depreciation and amortization was flat at CHF 36m. Operating profit rose by a solid 5% to CHF 209m.

 

Net profit at CHF 182m

At CHF 182m, net profit was just 3% off the year-earlier figure despite a CHF 34m non-recurring gain in H1 2018 resulting from a non-core real‑estate disposal. The effect of this non-recurring gain was mostly offset by higher operating profit and lower tax expense following the reduction in Vaud Canton’s corporate tax rates.

 

Slight uptick in lending and stable deposits

Total assets amounted to CHF 47.1bn (–2%). Cash and cash equivalents, which mainly comprise SNB deposits, totaled CHF 7.7bn (–6%). Mortgage lending rose 1.2%, or CHF 319m, to CHF 26.4bn. Other loans increased 6% to CHF 6.0bn, driven by solid momentum in corporate banking volumes across all segments.

On the liabilities side, customer deposits were stable at CHF 31.3bn. Personal banking and SME deposits rose, while large corporate and institutional deposits fell.

 

 

 

Increase in AuM

The Group’s assets under management expanded 6% to CHF 92.8bn, and net new money totaled CHF 757m. Net new money was composed mainly of assets from onshore personal banking, SME, and institutional clients.

 

CHF 301m paid out to shareholders

In accordance with its dividend policy, BCV returned CHF 35 per share to its shareholders in May, for a total payout of CHF 301m. The payout was up CHF 2 per share on the prior year and represents a total dividend yield of 4.7% based on BCV’s 2018 closing share price.

 

Solid financial position

The Bank’s total capital ratio was 16.8% at 30 June 2019 and shareholders’ equity amounted to CHF 3.4bn, attesting to BCV’s financial solidity. In the first half of the year, Standard & Poor’s once again reaffirmed the AA rating with a stable outlook it assigned to BCV in 2011, and Moody’s maintained its Aa2 rating, also with a stable outlook, first awarded in 2015.

 

Outlook

Barring a significant deterioration in the financial markets and/or the overall economic situation, FY 2019 results are expected to trend along the same lines as in prior years.

 

 

Lausanne, Switzerland, 22 August 2019

*Unaudited figures.

 

 

2020 calendar:

27 February                Full-year 2019 results

30 March                    Publication of the 2019 Annual Report (on www.bcv.ch)

30 April                      Annual Shareholders’ Meeting in Lausanne

20 August                   Half-year 2020 results

 

 

 

Contacts:

Jean-Pascal Baechler, Press Officer
Phone: +41 21 212 22 51
Email: jean-pascal.baechler@bcv.ch

 

Gregory Duong, Investor Relations
Phone: +41 21 212 20 71
Email: gregory.duong@bcv.ch

 

Note to editors:

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

text is authoritative.

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