The Lausanne-based Banque Cantonale Vaudoise group has reported that its third quarter operating profits were up 4 per cent on the 2009 figure to SFr371 million (about $383 million). Revenues were up 3 per cent at 30 September to SFr755 million.

Fee and commission income grew 7 per cent to SFr265 million, mainly, BCV said, reflecting trends in wealth management activities and lending.

But targeted hiring under the BCV development strategy, particularly in private banking and asset management, combined with additional employee training and ordinary pay increases, led to a 5 per cent rise in personnel costs to SFr240 million.

Group assets under management declined 1 per cent to SFr75.4 billion, under the combined effect of the market downturn and a net outflow of SFr251 million. The bank said this net outflow of funds reflects two distinct factors: the private client and SME segments continued to attract net new money, up SFr1.3 billion, while short-term deposits by large corporate and institutional clients fell SFr1.6 billion, owing, the bank said, to its decision to keep deposit interest rates low.

On the staff front, Reto Donatsch will replace outgoing board member Jean-Luc Strohm in May 2011. Strohm, the current vice chairman, will step down next year after reaching the maximum age for BCV board members.

Following a long career at Credit Suisse, Donatsch became chief executive of Bank Leu and was subsequently vice chairman of that bank's board until 2007.