BCV Group posted solid results in the first half of 2011. Despite the challenging market environment, net profit was up 6% to CHF 154m.* Revenues were stable at CHF 503m, while business volumes continued to expand steadily. Mortgage lending rose 4% to CHF 21.2bn and customer savings grew 3% to CHF 11.2bn.
Revenues stable in a challenging market environment
Total revenues were unchanged year-on-year, at CHF 503m. Interest income edged down 1% to CHF 255m in the continuing low-interest-rate environment. Fee and commission income was stable at CHF 178m, with revenues of CHF 10m after the integration of Banque Franck Galland & Cie SA offsetting the negative impact of the downturn in financial markets. Trading income increased 5% to CHF 52m, spurred by strong customer-driven forex volumes. Banque Franck Galland & Cie SA, which became part of BCV Group on 8 February 2011, contributed CHF 12m to total revenues.
Operating profit of CHF 234m
Total operating expenses grew 4% (+CHF 10m) to CHF 269m. This rise mainly reflected the consolidation of Banque Franck Galland & Cie SA (+CHF 9m). Personnel costs were up 5% to CHF 171m, while other operating expenses rose 1% to CHF 98m. Operating profit fell 4% to CHF 234m.
Net profit up 6%
Depreciation and write-offs increased 6% to CHF 42m, primarily due to the consolidation of Banque Franck Galland & Cie SA, while value adjustments, provisions and losses were down by half to CHF 2m. Extraordinary income amounted to CHF 13m. This figure demonstrates the resilience of BCV’s loan book, with low new provisioning needs and releases of credit-risk provisions. As a result, net profit increased 6% to CHF 154m. The cost/income ratio went from 59% to 62%.
Rise in customer-driven business volumes
Total assets grew 6% to CHF 37.6bn. Mortgage lending rose 4% (+CHF 911m) to CHF 21.2bn and other loans were up 2% to CHF 5.4bn.
On the liabilities side, the expansion in customer savings and investment accounts continued, with a 3% rise (+CHF 331m) to CHF 11.2bn. Other customer accounts were also up 3% (+CHF 426m) to CHF 13.3bn.
Capital ratios remained at comfortable levels: the FINMA capital adequacy ratio was 172% and the BIS Tier 1 ratio 17.5%. These ratios attest to the Bank’s financial solidity.
Rise in AuM
Group assets under management rose 3% (+CHF 2.4bn) to CHF 78.2bn. The integration of Banque Franck Galland & Cie SA had a positive impact of CHF 3bn on AuM. Net new money for the period came in at CHF 854m.
CHF 275m paid out to shareholders
In accordance with the Bank’s capital-management strategy and the motions approved at the Annual Shareholders’ Meeting, BCV returned CHF 275m to its shareholders in May in the form of a dividend payment and a distribution out of paid-in reserves. As the Bank’s majority shareholder, the Canton of Vaud thus received an amount of CHF 184m, in addition to CHF 66m in cantonal and municipal taxes for the 2010 financial year.
Piguet Galland & Cie SA
The merger of Banque Piguet & Cie SA and Banque Franck Galland & Cie SA to form Piguet Galland & Cie SA is moving ahead as scheduled. Banque Franck Galland & Cie SA was acquired on 8 February 2011 and the merger with Banque Piguet & Cie SA took effect on 7 April 2011.
These solid results in a challenging market environment reflect strong client confidence and BCV’s firm position in a dynamic local economy. Barring a significant deterioration in the financial markets and the overall economic situation, business development in H2 2011 is expected to trend along the same lines as in the first half.
Lausanne, Switzerland, 18 August 2011
* Unaudited figures.
Phone +41 (0)21 212 22 51
Gregory Duong, Investor Relations Officer
Phone + 41 21 212 20 71
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.