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.*
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.
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
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
Jean-Pascal Baechler, Press Officer
Phone: +41 21 212 22 51
Gregory Duong, Investor Relations
Phone: +41 21 212 20 71
Note to editors:
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The above text is a translation of the original French document; only the French
text is authoritative.