Banque Cantonale Vaudoise · SIX:BCVN

Banque Cantonale Vaudoise — FY2024 Earnings Presentation

35 slides from Banque Cantonale Vaudoise's earnings presentation, Feb 13, 2025

  1. Slide 1: Full-Year 2024 Results

    Full-Year 2024 Results Investors’ and analysts’ presentation 13 February 2025

  2. Slide 2: Disclaimer

    Disclaimer Waiver of liability. While we make every reasonable effort to use reliable information, we make no representation or warranty of any kind that all information contained in this document is accurate or complete. We disclaim all liability or responsibility for any loss, damage or injury tha

  3. Slide 3: Agenda

    Agenda Introduction FY 2024 financial results Conclusion Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO 3 Full-Year 2024 Results

  4. Slide 4: Key messages

    Key messages Business trends still positive thanks to resilient Swiss and Vaud economies Strong growth in mortgage loans (+8%) in a dynamic real-estate market Revenues stable at CHF 1.16bn in a less favorable interest-rate environment Second-best full-year results in BCV’s history,1 with operating p

  5. Slide 5: FY 2024 key figures

    FY 2024 key figures CHF (rounded) Revenues Operating profit Net profit 1.16bn 515m 441m 0% -5% -6% Total assets AuM 60.6bn 124.2bn +3% +6% 5 Full-Year 2024 Results

  6. Slide 6: Main business trends

    Main business trends CHF millions (rounded) Mortgage loans Sight deposits1, 2 AuM3 +8% -1% +6% 34,207 13,834 13,705 117,296 124,164 31,780 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2023 2024 2023 2024 2023 2024 Other loans Other client deposits2 Net new money -3% +6% +3,248 6,128 5,959 23,968

  7. Slide 7: New BoD and EB appointments

    New BoD and EB appointments Board of Directors Executive Board Sandra Hauser to be put Anne Maillard has been forth as new Board member appointed to the Bank’s at the upcoming Annual Executive Board as head of Shareholders’ Meeting, to the Retail Banking Division. succeed Ingrid Deltenre, She will r

  8. Slide 8: Very solid financial and ESG ratings

    Very solid financial and ESG ratings Financial ratings • Financial ratings reaffirmed: BCV is one of the best-rated banks in the world without an explicit government guarantee SD/D CC CCC- CCC CCC+ B- B B+ BB- BB BB+ BBB- BBB BBB+ A- A A+ AA- AA AA+ AAA C Ca Caa3 Caa2 Caa1 B3 B2 B1 Ba3 Ba2 Ba1 Baa3

  9. Slide 9: Retail Banking

    Retail Banking CHF millions (rounded)1 Mortgage loans Customer deposits • Strong rise in mortgage loans in a dynamic real- estate market +7% +2% 11,009 11,994 12,227 10,336 • Continuing cash inflows from customers • Revenues and operating profit up: 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2023 2024 2023 202

  10. Slide 10: Corporate Banking

    Corporate Banking CHF millions (rounded)1 Loans/off-balance-sheet Customer deposits • SMEs commitments – Mortgages and loans up 4% (excl. Covid-19 +7% +4% bridge loans) 19,321 20,643 12,028 12,538 – More than 80% of total Covid-19 bridge loans paid off – Deposits up 3% • Real-estate firms – Mortgage

  11. Slide 11: Wealth Management

    Wealth Management CHF millions (rounded)1 AuM2 Mortgage loans • AuM higher mainly on positive market performance and NNM from institutional clients +9% +5% 88,025 8,313 8,702 80,942 • Ongoing growth in mortgage lending • Revenues and operating profit up 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2023 2024 2023

  12. Slide 12: Trading

    Trading CHF millions (rounded)1 Revenues Operating profit • Forex trading up – forex accounted for more than 60% of overall Trading revenues +2% +7% 58 59 32 30 • Structured product volumes up • Revenues and operating profit up FY FY FY FY 2023 2024 2023 2024 Revenues time series +2% 58 58 59 53 56

  13. Slide 13: Agenda

    Agenda Introduction FY 2024 financial results Conclusion Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO 13 Full-Year 2024 Results

  14. Slide 14: Income statement

    Income statement CHF millions (rounded) FY 2023 FY 2024 Change Total income from ordinary banking operations 1,160 1,155 -5 0% Operating expenses -541 -557 +16 +3% Depreciation & amortization of fixed assets and -76 -82 +6 +8% impairment on equity investments Other provisions and losses -2 -2 0 +19%

  15. Slide 15: 2024 full-year results in perspective

    2024 full-year results in perspective CHF millions (rounded) Operating profit • As expected, 2024 results were lower than the record 2023 results but 542 nonetheless represent the second- -5% 515 best full-year performance in BCV’s 448 +15% Average +24% history1 2018-2022 414 • Operating profit up b

  16. Slide 16: Total income from banking operations – focus on NII

    Total income from banking operations – focus on NII CHF millions (rounded) Total income from ordinary banking operations • Net interest income – Down • Commissions & fees – Up on -5 0% favorable market conditions and high 1,160 1,155 personal banking transaction volumes 596 554 Net interest income (

  17. Slide 17: Total income from banking operations – focus on BSM

    Total income from banking operations – focus on BSM CHF millions (rounded) Total income from ordinary banking operations • Net interest income – Down • Commissions & fees – Up on -5 0% favorable market conditions and high 1,160 1,155 personal banking transaction volumes 596 554 Net interest income (

  18. Slide 18: Operating expenses, depreciation and amortization

    Operating expenses, depreciation and amortization CHF millions (rounded) 639 +22 +4% • Personnel costs – Up due to: 617 – Inflation-driven salary increases – Insourcing of IT hosting services – Bank projects, including in cybersecurity and asset management 387 Personnel costs +23 +6% 364 • Other ope

  19. Slide 19: Headcount

    Headcount Full-time equivalents at period-end 2,089 +107 +5% • Parent company headcount increase 1,982 due to: 227 Subsidiaries +18 +8% 209 – The third and final IT insourcing phase – Projects to further build out Asset Management – Increased cybersecurity staffing – Hiring facilitated by UBS/CS mer

  20. Slide 20: Assets

    Assets CHF billions (rounded) 60.6 +1.7 +3% • Cash and equivalents – Decrease in 58.9 SNB sight deposits 10.6 Cash and equivalents -2.0 -16% 12.6 Due from banks and reverse 1.1 +0.4 +72% repo agreements • Loans and advances to customers – 0.7 6.0 Loans and advances to customers -0.1 -3% Down on ongo

  21. Slide 21: Liabilities and equity

    Liabilities and equity CHF billions (rounded) 60.6 +1.7 +3% • Customer deposits – Up, in all 58.9 business segments 7.2 Due to banks -0.7 -9% 7.9 • Bonds and mortgage-backed bonds – Bond and Swiss Pfandbriefe issues 37.7 Customer deposits +1.2 +3% • Shareholders’ equity – Continuous 36.5 increase 8.

  22. Slide 22: Assets under management

    Assets under management CHF billions (rounded) Assets under management1 • AuM up 5.9% to CHF 124.2bn +5.9% – +CHF 3.6bn market performance (or +3.1% of 124.2 the AuM) 117.3 +3.6 7.7 Piguet +3.2 6.8 Galland – +CHF 3.2bn net new money (or +2.8% of the AuM) 110.5 116.4 BCV 31 Dec. Net new Performance 3

  23. Slide 23: Capital ratios

    Capital ratios CHF billions (rounded) Risk-weighted assets and CET1 ratio • CET1 ratio down, to 16.8%, vs. requirement of 14.0% based on total RWAs CET1 ratio FINMA minimum target capital ratio Common Equity Tier 1 Leverage ratio – Higher business volumes 17.7% 17.6% 17.9% 17.2% 16.8% • Leverage rat

  24. Slide 24: Liquidity ratio (LCR)

    Liquidity ratio (LCR) CHF billions (rounded) HQLAs1 LCR Minimum requirement • LCR increased by 1.6 points vs. H1 Net cash outflows1 2024 143.3% 129.0% 132.1% 129.5% 127.4% 129.0% • Proportional decrease in HQLAs and net cash outflows due to lower volumes in balance-sheet management transactions 100%

  25. Slide 25: Net Stable Funding Ratio (NSFR)

    Net Stable Funding Ratio (NSFR) CHF billions (rounded) Available stable funding (ASF)1 NSFR Minimum requirement • NSFR decreased by 1.2 points from Required stable funding (RSF)1 30 June 2024, with higher required stable funding (RSF), mainly due to: 124.4% 121.6% 122.6% 120.4% 119.5% – Increase in

  26. Slide 26: 2024 dividend (paid in 2025)

    2024 dividend (paid in 2025) CHF per share Distribution range • Proposal at 2025 AGM: increase the ordinary dividend by CHF 0.10, to 4.40 CHF 4.40 per share 4.30 – Total payout: CHF 379m – 86% of 2024 net profit 3.80 3.70 3.60 3.60 • If approved by the AGM, the dividend 3.50 will be paid according t

  27. Slide 27: Agenda

    Agenda Introduction FY 2024 financial results Conclusion Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO 27 Full-Year 2024 Results

  28. Slide 28: Swiss and Vaud GDP growth

    Swiss and Vaud GDP growth In % Swiss GDP1 Vaud GDP2 • Swiss and Vaud economies resilient despite sluggish macro trends Estimate at among Switzerland’s main trading January 2025 partners 7.0 6.1 6.0 5.3 • Swiss GDP growth should hold 5.0 steady over the coming years: 4.0 – Steady population growth 2.

  29. Slide 29: Real estate in Vaud

    Real estate in Vaud Transaction prices in Vaud (Basis 100 in Dec. 2014) • Pick-up in Vaud real-estate Apartments Single homes transaction prices: 140 – Up 3.2% on apartments +3,3% 130 +3,2% – Up 3.3% on single-family homes 120 110 • Prices supported by relatively low interest rates, strong demand dr

  30. Slide 30: Annexes

    Annexes 30 Full-Year 2024 Results

  31. Slide 31: Income statement

    Income statement CHF millions (rounded) FY 2024 FY 2023 Abs. change Change as % Interest and discount income 968.8 936.0 +32.8 +3 Interest and dividend income from financial investments 50.7 36.7 +14.0 +38 Interest expense -464.5 -376.0 +88.4 +24 Net interest income before loan impairment charges/re

  32. Slide 32: Balance sheet

    Balance sheet CHF millions (rounded) 31 Dec. 2024 31 Dec. 2023 Abs. change Change as % Cash and cash equivalents 10,614 12,602 -1,988 -16 Due from banks 1,139 662 +477 +72 Reverse repurchase agreements 0 0 0 n/a Loans and advances to customers 5,959 6,128 -170 -3 Mortgage loans 34,207 31,780 +2,427

  33. Slide 33: Key performance indicators

    Key performance indicators 2020 2021 2022 2023 2024 Impaired loans/ 0.5% 0.4% 0.4% 0.3% 0.3% credit exposure Customer deposits/ Asset quality 105% 107% 105% 96% 94% loans to customers and balance sheet structure Liquidity Coverage Ratio (LCR) 136% 157% 129% 129% 129% Interest margin 0.94% 0.86% 0.79

  34. Slide 34: BCV share

    BCV share Per share (CHF) Stock price (CHF) Operating profit EPS BCV SPI Index (rebased) 6.3 6.0 120 5.2 5.5 5.0 5.1 4.3 4.4 4.5 110 3.8 100 90 83.50 0 20201 2021 2022 2023 2024 1 Jan. 2024 30 Jun. 2024 31 Dec. 2024 Key figures 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2020 2021 2022 2023 2024 Number

  35. Slide 35: Calendar

    Calendar 13 February 2025 8 April 2025 8 May 2025 12 May 2025 Full-year 2024 Publication of the Annual Ex-dividend date1 results 2024 Annual and Shareholders’ Sustainability reports Meeting in Lausanne 13 May 2025 14 May 2025 21 August 2025 Dividend record Dividend payment1 Half-year 2025 date1 resu

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