Banque Cantonale Vaudoise · SIX:BCVN
Banque Cantonale Vaudoise — FY2018 Earnings Presentation
34 slides from Banque Cantonale Vaudoise's earnings presentation, Feb 21, 2019
Slide 1: 2018 Full-Year Results
2018 Full-Year Results Analysts’ Presentation 21 February 2019
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
Slide 3: Agenda
Agenda Introduction FY 2018 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Full-Year 2018 Financial Results 3
Slide 4: Key messages
Key messages Sustained growth in all key businesses and revenues up 1%, despite the ongoing negative-interest-rate environment Operating profit up (+4%), thanks to continuing strict cost control 1.0 Net profit up 9% year on year to CHF 350m, including a capital gain from the disposal of a building a
Slide 5: FY 2018 key figures
FY 2018 key figures CHF (rounded) Revenues Operating profit Net profit 977m 403m 350m +1% +4% +9% 1.0 Total assets AuM 47.9bn 87.6bn +5% +1% Full-Year 2018 Financial Results 5
Slide 6: Main business trends
Main business trends CHF millions (rounded) Mortgage loans Sight deposits1 AuM +3% +4% +1% 25'407 26'079 17'589 18'335 86'490 87'620 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2017 2018 2017 2018 2017 2018 0.5 0.5 0.5 Other loans Other client deposits Net new money +18% +1% +4,001 5'677 12'923
Slide 7: Other highlights
Other highlights Fabienne Freymond Cantone appointed to CHF 284m distributed to shareholders in the Board of Directors by the Vaud May for the 2017 fiscal year; i.e., CHF 33 Cantonal Government, replacing Luc per share or a dividend yield of 4.5%1 Recordon as of 26 April 2018 AA rating from S&P with
Slide 8: Retail Banking
Retail Banking CHF millions (rounded)1 Mortgage loans Customer deposits +2% +2% Continuing rise in mortgage loans, which 7'861 8'003 8'321 8'528 surpassed CHF 8bn Customer deposits up – no negative interest rates charged to retail customers 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2017 2018 2017 2018 R
Slide 9: Corporate Banking
Corporate Banking CHF millions (rounded)1 Loans/off-BS commitments Customer deposits +7% +6% Solid momentum in all Corporate Banking 16'262 17'326 9'042 9'604 businesses SMEs − Loans and off-balance-sheet commitments up 6% − Customer deposits up 6% Large Corporates 31 Dec. 31 Dec. 31 Dec. 31 Dec
Slide 10: Wealth Management
Wealth Management CHF millions (rounded)1 AuM Mortgage loans +1% +2% Growth in AuM 64'082 64'411 7'526 7'661 − NNM mainly from institutional and onshore Private Banking clients − Negative performance in financial markets 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2017 2018 2017 2018 Continuing increase in
Slide 11: Trading
Trading CHF millions (rounded)1 Revenues Operating profit -17% -35% 53 23 Low volatility in the forex market and the 44 ongoing negative-interest-rate environment have weighed on the three Trading 15 businesses: − Forex − Equities, bonds, and fixed income − Structured products FY FY FY FY 2017 201
Slide 12: Agenda
Agenda Introduction FY 2018 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Full-Year 2018 Financial Results 12
Slide 13: Income statement
Income statement CHF millions (rounded) FY 2017 FY 2018 Change Total income from ordinary banking operations 967 977 +10 +1% Operating expenses -508 -500 -8 -2% Depreciation & amortization of fixed assets and impairment on -70 -69 -1 -2% equity investments Other provisions and losses -1 -5 +4 +279%
Slide 14: Total income from banking operations
Total income from banking operations CHF millions (rounded) Total income from ordinary banking operations 967 977 +10 +1% NII – Net interest income up Commissions & fees – Stable 478 490 Net interest income +12 +3% Trading – Activity down 316 317 Commissions & fees +1 0% 134 128 Trading -6 -4%
Slide 15: Operating expenses, depreciation and amortization
Operating expenses, depreciation and amortization CHF millions (rounded) 579 569 -10 -2% Continued firm control of operating expenses 171 Total operating expenses, depreciation and 167 Other operating expenses -4 -2% amortization down 1.2% per year for the past five years 337 333 Personnel costs
Slide 16: Headcount
Headcount Full-time equivalents at period-end -41 +1 -4 -21 -26 Continued firm cost control 1,987 1,946 1,947 1,943 1,922 1,896 214 205 213 204 197 196 Subsidiaries 1.0 1'773 1'741 1'734 1'739 Parent 1'725 1'700 company 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2013 2014 2015 2016 2017 2018
Slide 17: Assets
Assets CHF billions (rounded) 47.9 +2.5 +5% Cash and equivalents – Continuous 45.4 increase in SNB sight deposits despite the 8.2 Cash and equivalents +0.2 +2% ongoing negative-interest-rate environment 8.0 Due from banks and reverse Loans and advances to customers – Up 2.2 +0.7 +48% repo agreem
Slide 18: Liabilities and equity
Liabilities and equity CHF billions (rounded) 47.9 +2.5 +5% Due to banks – Strong increase as a result 45.4 +1.8 +62% of repo agreements 4.5 Due to banks 2.7 Customer deposits – Continuous increase despite the ongoing negative-interest-rate environment Shareholders’ equity – Up by CHF 65m 30.5
Slide 19: Assets under management
Assets under management CHF billions (rounded) Assets under management +1% AuM up 1% to CHF 87.6bn 86.5 -2.9 87.6 Piguet +4.0 5.2 Net new money of CHF 4.0bn 5.8 Galland 80.7 82.4 Performance of -CHF 2.9bn BCV 31 Dec. Net new Performance 31 Dec. 2017 money 2018 Net new money 4.0 Onshore net i
Slide 20: Capital ratios
Capital ratios CHF billions (rounded) Risk-weighted assets and CET1 ratio RWAs CET1 ratio FINMA minimum target CET1 ratio Common Equity Tier 1 Leverage ratio CET1 ratio stable at 17.1% − Business growth, mainly in residential 18.1% 17.7% 18.3% mortgages and Corporate Banking 17.5% 17.1% 17.1% − IR
Slide 21: Risk-weighted assets
Risk-weighted assets CHF billions (rounded) Risk-weighted assets and CET1 ratio RWAs CET1 ratio In H1 2018, the increase in RWAs was driven by: 18.9 +0.2 − A higher specific IRB multiplier for +0.3 -0.7 residential mortgages 18.4 − Business development mostly in +0.5 Corporate Banking 18.2 In H2
Slide 22: Liquidity ratio (LCR)
Liquidity ratio (LCR) CHF millions (rounded) HQLAs1 Net cash outflows1 LCR Minimum requirement LCR has decreased slightly since H1 2018 Composition of the Bank’s HQLAs: − 65%: cash deposited with the SNB 116.9% 116.7% 109.8% 109.7% 112.3% − 35%: mainly Swiss-issued, AAA- and AA- 106.9% rated sec
Slide 23: 2018 dividend
2018 dividend CHF per share Horizon 1 Horizon 2 Horizon 3 2008-2012 2013-2017 2018-2022 New distribution policy (2018-2022) Ordinary dividend Tax-exempt distribution − Applicable as of the 2018 dividend − Between CHF 34 and CHF 38 per share 35 32 32 32 32 32 33 33 33 − Designed to mirror the gains
Slide 24: Agenda
Agenda Introduction FY 2018 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Full-Year 2018 Financial Results 24
Slide 25: Swiss and Vaud GDP growth
ETTRE A JOUR Swiss and Vaud GDP growth In % Swiss GDP (source: SECO1) Vaud GDP (source: CREA2) In 2018: Strong GDP growth in Switzerland and Vaud (above 2%) thanks to a robust Estimate at first half 3.0 January 2019 3.0 2.8 In 2019-2020: Lower GDP growth (between 1.5% and 1.8%) due to the global
Slide 26: Real estate in Vaud
Real estate in Vaud Transaction prices in Vaud (Basis 100 in Dec. 2004) Apartments Single homes 220 Vaud real-estate market has levelled off since 203 +2.5% 197 198 195 198 2014 200 189 190 176 In 2018, prices on Vaud real-estate 180 170 171 +4.6% 167 169 163 163 transactions increased slightly,
Slide 27: 2019 Outlook
2019 Outlook Business trends in line with 2018 Low revenue growth expected given the current interest-rate environment 1.0 Continued firm control of operating expenses New corporate tax rate of 13.8% (down from 21%) applicable since the beginning of this year Full-Year 2018 Financial Results 27
Slide 28: Calendar
Calendar 23 August 2018 21 February 2019 2 April 2019 2 May 2019 Half-year 2018 Full-year 2018 Publication of the Annual results results 2018 Annual Report Shareholders’ Meeting in Lausanne 1.0 6 May 2019 7 May 2019 8 May 2019 22 August 2019 Ex-dividend date1 Dividend record Dividend payment1 Half-y
Slide 29: Appendices
Appendices & BCV
Slide 30: Income statement
Income statement CHF millions (rounded) FY 2018 FY 2017 Abs % Interest and discount income 573.1 576.4 -3.3 -1 Interest and dividend income from financial investments 31.0 34.7 -3.7 -11 Interest expense -108.0 -113.3 -5.3 -5 Net interest income before loan impairment charges/reversals 496.1 497.8 -1
Slide 31: Balance sheet
Balance sheet CHF millions (rounded) 31 Dec. 2018 31 Dec. 2017 Abs % Cash and cash equivalents 8,235 8,044 191 2 Due from banks 1,921 1,013 908 90 Reverse repurchase agreements 314 499 -185 -37 Loans and advances to customers 5,677 4,826 851 18 Mortgage loans 26,079 25,407 672 3 Trading portfolio as
Slide 32: Key performance indicators
Key performance indicators 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2014 2015 2016 2017 2018 Impaired loans/ 0.7% 0.7% 0.7% 0.7% 0.6% credit exposure Asset quality Customer deposits/ and balance 96% 98% 98% 101% 99% loans to customers1 sheet structure Interest margin 1.22% 1.14% 1.11% 1.12% 1.10% CET
Slide 33: BCV share
BCV share Per share (CHF) Stock price 23.0 23.6 23.2 23.6 820 21.6 21.3 21.8 19.0 18.8 800 18.2 17.8 18.2 Operating 780 profit EPS 760 741.00 740 720 700 0 H1 H2 H1 H2 H1 H2 1 Jan. 2018 31 Mar. 2018 30 Jun. 2018 30 Sep. 2018 31 Dec. 2018 2016 2016 2017 2017 2018 2018 Key figures 31 Dec. 31 Dec. 31 D
Slide 34: BCV Investor Relations iPad App
BCV Investor Relations iPad App Our BCV Investor Relations app keeps you in touch with the latest developments at BCV Group It brings together everything of interest to shareholders, investors and analysts, including: An overview of BCV Our key figures Annual and interim reports Press releas
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