In a challenging economic environment, BCV Group reported very good results for the nine months ended 30 September, in line with the trend observed in H1 09. Operating income rose 22% YoY to CHF 358m*, with CHF 130m generated in the third quarter alone.
Total revenues up 9%
Total revenues at 30 September were CHF 730m, a 9% year-on-year improvement. Despite growth in customer business volumes, interest income was practically stable (-1%) at CHF 381m. This flat trend reflected a prudent approach to liquidity management during the period, as the Bank experienced significant cash inflows which were placed mainly at the Swiss National Bank. The stockmarket downturn in 2008 and early 2009 along with reduced market activity led to a 6% decline in fee and commission income to CHF 247m.
Trading income improved to CHF 73m compared with the year-earlier loss of CHF 18m. This is a particularly strong performance given the measures taken to curtail risk in this business line.
As expected, other ordinary income declined 30% to CHF 29m due to the fall-off in disposals of financial investments compared with the high levels seen in recent years as part of the Group's realignment strategy.
Operating income up 22% to CHF 358m
Total operating expenses contracted 1% to CHF 372m, in line with the Bank's cost control strategy. Personnel costs remained stable at CHF 229m, and other operating expenses fell 2% to CHF 143m. Consequently, operating income for the first nine months of the year rose by 22% to CHF 358m.
Growth in customer business volumes
Total assets rose 3% to CHF 36.4bn at 30 September.
The most notable asset-side change was in mortgage lending volumes, which grew by a firm 7% (+CHF 1.1bn) to CHF 18.4bn. Other customer loans and advances shed CHF 223m (-4%) to CHF 5.3bn, mainly reflecting the Bank's reduced exposure in the area of trade finance.
In order to limit bank-counterparty risk exposure, BCV reduced amounts due from banks by 20% to CHF 6.2bn at 30 September. As a result, cash holdings with the Swiss National Bank rose and financial investments grew by CHF 1.2bn (+79%) to CHF 2.8bn through added placements in top-rated bonds.
On the liabilities side, customer savings deposits expanded CHF 1.2bn (+14%) to CHF 9.7bn and other customer accounts were up CHF 445m (+3%) to CHF 13.5bn. These figures reflect strong client trust in the Bank.
Assets under management on the rise
Group assets under management rose CHF 8.7bn (+13%) to CHF 75.5bn. Net new money amounted to CHF 2.9bn for the period.
Outlook
Given the current climate, management is very satisfied with these results. They demonstrate strong client confidence in the Bank against a backdrop of difficult economic conditions. BCV Group expects full-year trends to be similar to those observed in the first nine months of the year.
Lausanne, Switzerland, 12 November 2009
* Unaudited figures
Contacts
Christian Jacot-Descombes, Press Officer
Phone + 41 21 212 28 61
E-Mail christian.jacot-descombes@bcv.ch
Gregory Duong, Investor Relations Officer
Phone + 41 21 212 20 71
E-Mail gregory.duong@bcv.ch
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.