BCV Group delivered strong H1 2024 results. Revenues were stable at CHF 581m in a less favorable interest-rate environment. Compared with H1 from the Bank’s record 2023 year, operating profit decreased 6% to CHF 258m, while net profit declined 8% to CHF 221m. These figures nevertheless represent the second-best H1 performance in BCV’s history, excluding exceptional items.*
Revenues stable at CHF 581m
Total revenues were stable year on year at CHF 581m. Net interest income held steady at CHF 290m, with expanding business volumes offsetting an interest-rate environment that was less favorable than in H1 2023. Fee and commission income was up 7% to CHF 181m, reflecting favorable financial-market trends and high personal-banking transaction volumes. Net trading income fell 15% to CHF 89m, mainly on lower income from active balance-sheet management in the current interest-rate environment. Other ordinary income rose 11% to CHF 21m.
Operating profit of CHF 258m
Operating expenses were up 5% to CHF 283m. Personnel costs climbed 7% to CHF 194m, owing largely to higher staff numbers in IT and cybersecurity and to Bank projects, including in Asset Management. Other operating expenses remained flat at CHF 89m (+1%). Depreciation and amortization rose by 8% to CHF 39m. Operating profit declined by 6% to CHF 258m.
Net profit of CHF 221m
The Bank’s tax expense was unchanged at CHF 37m despite the decline in taxable income, following Switzerland’s June 2023 decision to implement the OECD’s minimum corporate tax rate. Net profit contracted 8% to CHF 221m. This nonetheless represents the second-best H1 bottom line in the Bank’s history, excluding exceptional items. The ROE of 11.5% is one of the highest in BCV’s peer group.
Balance sheet growth
Total assets amounted to CHF 60.5bn, up CHF 1.7bn (3%) on the end-2023 figure. Cash and cash equivalents, which are mainly held as SNB sight deposits, were flat at CHF 12.6bn. Mortgage lending expanded 5%, or CHF 1.5bn, to CHF 33.3bn, in a dynamic real-estate market. Other loans remained stable at CHF 6.1bn (–1%), as increased corporate lending offset ongoing Covid-19 loan reimbursements.
On the liabilities side, customer deposits were stable at CHF 36.7bn (+1%).
Net fund inflows
The Group's assets under management rose 4% to CHF 117.2bn. Net new money totaled CHF 1.1bn (+1%) and came from individuals in Switzerland, SMEs, and institutional clients. Investment performance drove AuM up by CHF 3.2bn (+3%).
CHF 370m paid out to shareholders
In accordance with its dividend policy, BCV distributed CHF 4.30 per share to its shareholders in May, for a total payout of CHF 370m. The dividend was up CHF 0.50 per share and represents a total dividend yield of 4.0% based on BCV’s 2023 closing share price.
Solid financial position
The Bank’s CET1 ratio stood at 17.0% at 30 June 2024 and shareholders’ equity amounted to CHF 3.7bn, attesting to BCV’s financial solidity. Standard & Poor's once again reaffirmed its AA rating for BCV with a stable outlook, and Moody's maintained its Aa2 rating, also with a stable outlook.
Very solid ESG ratings
BCV’s longstanding commitment to sustainable economic development is reflected in the Bank’s ESG scores. MSCI has given the Bank an ESG rating of AA, the agency’s second-highest score, placing BCV in the “Leader” category. Ethos has reaffirmed the Bank’s A– rating, the second-highest score.
Outlook
Barring a significant change in the financial markets or the overall economic situation, FY 2024 business development is expected to trend along the same lines as in previous reporting periods. However, as announced earlier this year, BCV’s 2024 results are expected to come in below the record 2023 numbers.
Lausanne, Switzerland, 22 August 2024
*Unaudited figures
2025 calendar
13 February Full-year 2024 results
8 April Publication of the 2024 annual and sustainability reports
8 May Annual Shareholders’ Meeting in Lausanne
21 August Half-year 2025 results
Banque Cantonale Vaudoise - Contacts
Jean-Pascal Baechler, Press Officer
Tel.: +41 21 212 22 51
Email: jean-pascal.baechler@bcv.ch
Grégory Duong, Investor Relations
Tel.: +41 21 212 20 71
Email: gregory.duong@bcv.ch
The above text is a translation of the original French document; only the French text is authoritative.
