Financial Results

Switzerland's BCV Reports Rise In Profits; Wealth AuM Rises

Tom Burroughes Group Editor London 22 August 2014

Switzerland's BCV Reports Rise In Profits; Wealth AuM Rises

Banque Cantonale Vaudoise, the Swiss bank, has reported a year-on-year rise in operating profit, standing at SFr503 million ($661.2 million), with results in line with trends seen during recent quarters.

Banque Cantonale Vaudoise, the Swiss bank, has reported a year-on-year rise in operating profit, standing at SFr503 million ($661.2 million), with results in line with trends seen during recent quarters.

Net profit, at SFr154 million, rose 2 per cent from the same six-month period a year ago, it said in a statement yesterday.

Commenting on wealth management, the bank said although buoyant trends in financial markets pushed up assets under management by 3.5 per cent to SFr67.7 billion, transaction volumes were mostly down compared to the first half of 2013. However, the volume of mortgage loans continued to grow in a slowing real estate market, reaching SFr6.7 billion (+1.5 per cent). Net new money remained positive, with inflows of onshore funds outweighing outflows of offshore assets.

Overall, revenues remained stable at SFr188 million (–0.2 per cent), and operating profit edged up 0.5 per cent to SFr108 million.

“In May, we distributed SFr275 million, or SFr32 per share, to shareholders. This reflects our confidence in our strategic choices and our ability to deliver profitable growth, as well as the bank’s high capital ratio,” Olivier Steimer, chairman, and Pascal Kiener, chief executive, said in the statement.

“Since 2007, BCV has paid its shareholders – starting with our majority shareholder, the Canton of Vaud – a total of over SFr2 billion, which represents almost 87 per cent of cumulative net earnings. This gives BCV one of the highest payout ratios of any Swiss company,” they said.

“The Vaud economy has stayed firmly upbeat, in contrast to the mixed situation elsewhere in Europe. GDP in Vaud is set to grow by 2.8 per cent this year and 3 per cent in 2015, according to the latest CREA Institute estimates. The overall trend thus remains positive, even though the Canton still has to deal with a number of issues; these include corporate tax reforms and implementation of the initiative 'against mass immigration' that was adopted in a nationwide referendum on 9 February, the statement said.  

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