Banque Cantonale Vaudoise has reported a 6 per cent year-on-year rise in its first-half profits as well as rise in assets under management, boosted by an acquisition completed earlier in 2011.

Banque Cantonale Vaudoise, the Lausanne-based private banking group, said it logged a net profit of SFr154 million (around $193.7 million) in the first half of this year, a year-on-year gain of 6 per cent, achieved on stable revenues of SFr503 million.

The bank, like many of its larger peers such as Credit Suisse, UBS and Julius Baer, has had to contend with a sharp rise in the value of the Swiss franc, which can hit earnings when they are converted into the domestic currency.

Fee and commission income held steady at SFr178 million, with revenues of SFr10 million with the integration of Banque Franck Galland & Cie offsetting the negative impact of the downturn in financial markets, BCV said in a statement today.

Trading income increased by 5 per cent to SFr52 million, “spurred by strong customer-driven forex volumes”, the bank said. Banque Franck Galland & Cie, which became part of BCV Group on 8 February, contributed SFr12 million to total revenues.

Total operating expenses grew by 4 per cent, or SFr10 million, to SFr269 million, mainly caused by the consolidation of Banque Franck Galland & Cie. Personnel costs rose 5 per cent to SFr171 million. The cost/income ratio rose from 59 per cent to 62 per cent.

The bank had a BIS Tier 1 ratio of 17.5 per cent.

Group assets under management rose 3 per cent (up SFr 2.4 billion) to SFr78.2 billion. The addition of Banque Franck Galland & Cie added SFr3 billion in AuM.