BCV Group’s financial results at 30 September 2013 were in line with the trend observed thus far this year. While business volumes were once again on the rise, the low-interest-rate environment and the Bank’s strategy of moderate growth in mortgage lending weighed on revenues. The top-line trend was partly offset by firm cost control, and operating profit for the period was down 4% to CHF 351m*.
Revenues down slightly in a challenging environment
Total revenues for the nine months ending 30 September were CHF 743m, down 2% compared with the year-earlier period. Interest income fell 5% to CHF 375m, reflecting the Bank’s prudent liquidity management, its strategy of moderate growth in mortgage lending, the continuing low-interest-rate environment, and the cyclical downtrend in trade finance activities. Fee and commission income edged down 1% to CHF 258m. Trading income remained solid at CHF 85m, although it was off 2% due to a decrease in customer-driven forex activities. Other ordinary income rose 25% to CHF 26m.
Operating profit at CHF 351m
Total operating expenses declined 1% to CHF 392m. Personnel costs were stable at CHF 250m despite the transfer on 1 July 2013 of 80 specialists from IBM charged with maintaining and developing the Bank’s IT platform. Other operating expenses decreased 2% to CHF 142m. This effective cost control partly offset the decline in revenues, with operating profit down 4% to CHF 351m.
Rise in customer-driven business volumes
Total assets expanded 1% to CHF 40.3bn. Mortgage lending rose 2% (+CHF 426m) to CHF 23.3bn, in line with the Bank’s controlled growth target in this area. Other loans increased 3% to CHF 5.2bn.
On the liabilities side, the expansion in customer savings and investment accounts continued, with a 3% rise (+CHF 419m) to CHF 12.7bn. Other customer accounts grew by 4% (+CHF 529m) to CHF 15.4bn.
Rise in AuM
Group assets under management were up 5% (+CHF 4.3bn) to CHF 86.1bn. Net new money amounted to CHF 852m.
Barring a significant deterioration in the financial markets and the overall economic situation, business development for the full year is expected to trend along the same lines as in the first nine months of the year.
Lausanne, Switzerland, 14 November 2013
* Unaudited figures
Christian Jacot-Descombes, Press Officer
Phone + 41 21 212 28 61
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.