BCV Group delivered very solid H1 results despite the ongoing negative-interest-rate environment. Revenues edged up 1% to CHF 497m, operating profit grew 3% to CHF 203m, and net profit rose 5% to CHF 164m.*
Top-line growth of 1%
Total revenues were up 1% year on year to CHF 497m. Net interest income before loan impairment charges/reversals increased 4% to CHF 251m, and net interest income grew 2% to CHF 247m. Fee and commission income held fairly steady, amounting to CHF 158m. Net trading income remained high at CHF 69m (+2%). Other ordinary income totaled CHF 22m (-15%).
Operating profit up 3%
Operating expenses were unchanged at CHF 257m. Personnel costs and other operating expenses were flat year on year, at CHF 171m and CHF 87m respectively. Depreciation and amortization decreased 4% to CHF 36m. Operating profit was up 3% to CHF 203m.
Net profit up 5%
The Group’s extraordinary income and tax expense were broadly stable compared with the prior year, with extraordinary income up CHF 1m and tax expense down CHF 1m to CHF 41 million. The 5% rise in net profit to CHF 164m was driven by the improvement in operating earnings.
Balance sheet expands 2%
Total assets expanded 2% to CHF 45.1bn. Cash and cash equivalents, which mainly comprise SNB sight deposits, totaled CHF 7.6bn (+1%). Mortgage lending rose 1%, or CHF 269m, to CHF 25.3bn. Other loans increased 3% to CHF 4.9bn.
On the liabilities side, customer savings and investment accounts grew 1%, or CHF 232m, to CHF 29.5bn.
AuM down 4%
The Group’s assets under management decreased 4% to CHF 82.0bn, mainly due to the ongoing transfer of Swisscanto funds. Net new money amounted to CHF 59m. Strong growth in private-client and SME assets (+CHF 1.2bn) offset the outflow of funds from Large Corporate and institutional clients (-CHF 1.1bn) resulting from the negative-interest-rate environment.
CHF 284m paid out to shareholders
In accordance with its distribution policy, BCV returned CHF 33 per share to its shareholders in May, for a total payout of CHF 284m. This payout is unchanged from the prior year and represents a total dividend yield of over 5% based on BCV’s 2016 closing share price.
Solid financial position
The Bank’s total capital ratio was 16.5% and shareholders’ equity amounted to CHF 3.3bn, attesting to BCV’s financial solidity. In June, rating agency Moody’s reaffirmed the Aa2 rating (with a stable outlook) assigned to BCV in 2015.
Changes in the Executive Board and Board of Directors
New Chairman of the Board of Directors
The Vaud Cantonal Government appointed Jacques de Watteville as the new Chairman of BCV’s Board of Directors. He will succeed Olivier Steimer, who has chaired the Board since 2002 and who will remain Chairman until 31 December 2017. Mr. de Watteville served as Switzerland’s chief negotiator with the European Union from 2015 until early 2017 and as State Secretary for International Financial Matters in the Federal Department of Finance between 2013 and 2016. He will take up his position on 1 January 2018.
New head of the Corporate Banking Division
BCV’s Board of Directors appointed Andreas Diemant to the Bank’s Executive Board as head of the Corporate Banking Division. Mr. Diemant, who has worked at UBS as head of the Swiss institutional clients unit and member of the management board for corporate and institutional clients, will join BCV on 1 September 2017. He will replace Jean‑François Schwarz, who had been in charge of corporate banking at BCV since 2003 and who retired on 30 June.
Barring a significant deterioration in the financial markets and/or the overall economic situation, FY 2017 results are expected to be in line with those recorded in the first half.
Lausanne, Switzerland, 17 August 2017
Christian Jacot-Descombes, Press Officer
Phone: +41 79 816 99 30
Gregory Duong, Investor Relations
Phone: +41 21 212 20 71
Note to editors:
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 text is authoritative.