BCV Group reported solid financial results for the nine months ended 30 September, in line with the trend observed in the first half of the year. Operating profit rose 4% to CHF 371m.*
Revenues up 3%
Total revenues at 30 September were CHF 755m, a 3% year-on-year improvement. Interest income rose 1% to CHF 385m despite the Bank’s prudent approach to liquidity management, with funds being placed primarily with the Swiss National Bank in light of uncertainties on the interbank money markets. Fee and commission income grew 7% to CHF 265m, mainly reflecting trends in lending and wealth management activities. Trading income was stable at CHF 73m, while other ordinary income increased 14% to CHF 32m as a result of real estate sales.
Operating profit up 4% to CHF 371m
Total operating expenses grew 3% to CHF 384m. Targeted hiring under the Bank’s development strategy, particularly in private banking and asset management, combined with additional employee training and ordinary pay increases led to a 5% rise in personnel costs to CHF 240m. Other operating expenses were stable at CHF 143m. The trend in operating expenses, together with the top-line growth detailed above, drove a 4% rise in operating profit to CHF 371m.
Rise in customer-driven business volumes
Total assets increased 5% to CHF 37.6bn. Mortgage lending rose 5% (+CHF 878m) and totaled CHF 19.6bn at 30 September. Other loans were down 5% to CHF 5.3bn; this decline was mainly due to one-off operations and does not reflect any change in the Bank’s lending policy.
On the liabilities side, the strong expansion in customer savings and investment accounts continued, with a 10% rise (+CHF 983m) to CHF 10.8bn. Other customer accounts declined 3% (-CHF 462m) to CHF 13.1bn.
Assets under management slightly lower
Group assets under management declined 1% to CHF 75.4bn, under the combined effect of the market downturn and a net outflow of CHF 251m. This net outflow of funds reflects two distinct factors. On one hand, the private-client and SME segments continued to attract net new money (+CHF 1.3bn). On the other, short-term deposits by large corporate and institutional clients contracted (‑CHF 1.6bn) owing to the Bank's decision to keep deposit interest rates low in an environment marked by plentiful liquidity.
Reto Donatsch slated to join the Board of Directors
At its meeting on 5 November, BCV's Board of Directors decided to propose Reto Donatsch to replace outgoing Board member Jean-Luc Strohm at the Annual Shareholders’ Meeting scheduled for 5 May 2011. Mr. Strohm, the current Vice Chairman, will step down next year after reaching the maximum age for BCV board members stipulated in the Cantonal Act Governing BCV.
Reto Donatsch is 60 years old and has extensive experience in the banking industry. Following a long career at Credit Suisse, he became CEO of Bank Leu Ltd and was subsequently Vice Chairman of that bank's board until 2007. Since then, Mr. Donatsch has served on the boards of several companies and foundations.
Outlook
Management is very satisfied with these results. They reflect strong client confidence in BCV and good business growth amid a slowly improving economy, despite ongoing challenges on the financial markets. Business development for 2010 as a whole is expected to trend along the same lines as in the first nine months of the year.
Lausanne, Switzerland, 11 November 2010
* Figures are unaudited
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
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The above text is a translation of the original French document; only the French version is authoritative.