Banque Cantonale Vaudoise · SIX:BCVN
Banque Cantonale Vaudoise — FY2017 Earnings Presentation
37 slides from Banque Cantonale Vaudoise's earnings presentation, Feb 15, 2018
Slide 1: 2017 Full-Year Results
2017 Full-Year Results Analysts’ Presentation 15 February 2018
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 2017 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Full-Year 2017 Financial Results 3
Slide 4: Key messages
Key messages Revenues stable in an ongoing negative-interest-rate environment Operating profit up 1% to CHF 387m, thanks to firm cost control 1.0 Net profit at CHF 320m, up 3%, with a proposed distribution of CHF 33 per share, for a 4.5% dividend yield1 Distribution policy extended for the next five
Slide 5: 2017 key figures
2017 key figures CHF (rounded) Revenues Operating profit Net profit 967m 387m 320m 0% +1% +3% 1.0 Total assets Net new money 45.4bn 2.3bn +3% Full-Year 2017 Financial Results 5
Slide 6: Main business trends
Main business trends CHF millions (rounded) Mortgage loans Savings deposits AuM +1,5% +6% +1% 25,037 25,407 16,588 17,589 85,382 86,490 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2016 2017 2016 2017 2016 2017 0.5 0.5 0.5 Other loans Other client deposits Net new money +2% 0% 12,657 12,923 +2,52
Slide 7: New Board-member appointments
New Board-member appointments Board of Directors Executive Board Jacques de Watteville was Christian Meixenberger took appointed as the new up his position as head of Chairman to succeed Olivier the Business Support Steimer. He took office on Division in January 1 January 2018. Andreas Diemant took
Slide 8: Other highlights
Other highlights In May, BCV distributed CHF 284m – or In November, the Vaud Cantonal CHF 33 per share – to its shareholders, government announced that the for a 4.5% yield1 corporate tax reform would go into effect in 2019, lowering the rate to 13.8% 0.5 AA rating from S&P since 2011 Moody’s reaffi
Slide 9: Retail Banking
Retail Banking CHF millions (rounded)1 Mortgage loans Customer deposits +2% +4% Continued moderate growth in mortgage loans 7,733 7,861 7,998 8,312 Customer deposits up despite low interest rates paid on deposit accounts Revenues slightly lower due to the end of the online brokerage partnershi
Slide 10: Corporate Banking
Corporate Banking CHF millions (rounded)1 Loans/off-BS commitments Customer deposits +4% +4% SMEs 15,745 16,362 8,697 9,042 − Positive trend in mortgage loans (+2%) and in other loans and advances (+6%) − Customer deposits down slightly (-1%) Normal up-and-down business trend in Large Corporates
Slide 11: Wealth Management
Wealth Management CHF millions (rounded)1 AuM Mortgage loans 0% +1% Stable AuM as the transfer of Swisscanto funds (-CHF 5.3bn) offset net new money 64,246 64,082 7,432 7,526 (+CHF 2.0bn) and market performance Robust business development in onshore Private Banking Continuing business developm
Slide 12: Trading
Trading CHF millions (rounded)1 Revenues Operating profit -13% -28% Client-driven activity in forex trading below 61 31 2016 due to lower volatility 53 22 FY FY FY FY 2016 2017 2016 2017 Revenues time series1,2 35 -18% 32 32 29 30 26 24 23 H1 H2 H1 H2 H1 H2 H1 H2 2014 2014 2015 2015 2016 2016 2017
Slide 13: Agenda
Agenda Introduction FY 2017 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Full-Year 2017 Financial Results 13
Slide 14: Income statement
Income statement CHF millions (rounded) Change FY 2016 FY 2017 vs. 2016 Total income from ordinary banking operations 967 967 0 0% Operating expenses -509 -508 -1 0% Depreciation & amortization of fixed assets, and -72 -70 -2 -3% impairment on equity investments Other provisions and losses -3 -1 -2
Slide 15: Total income from banking operations
Total income from banking operations CHF millions (rounded) Total income from ordinary banking operations Stable Net Interest Income 967 967 0 0% Commissions & fees – Up notably thanks to favorable financial market trend and 478 478 Net interest income 0 0% business recovery in Trade Finance T
Slide 16: Operating expenses, depreciation and amortization
Operating expenses, depreciation and amortization CHF millions (rounded) 581 579 -2 -0% Operating expenses – Continued firm cost control Over the last five years, operating 171 171 Other operating expenses 0 +0% expenses, depreciation and amortization have been steadily reduced (1.1% p.a. on ave
Slide 17: Headcount
Headcount Full-time equivalents at period-end -41 +1 -4 -21 Steady decrease in headcount at both the parent company and its subsidiaries over 1,987 1,946 1,947 1,943 1,922 the last five years 214 205 213 204 197 Subsidiaries 1.0 1,773 Parent 1,741 1,734 1,739 1,725 company 31 Dec. 31 Dec. 31 Dec.
Slide 18: Assets
Assets CHF billions (rounded) 45.4 +1.3 +3% Cash and equivalents – Continued 44.1 increase in SNB sight deposits following 8.0 +0.5 +7% fund inflows, despite negative interest rates Cash and equivalents 7.5 charged on large depositors Due from banks and reverse 1.5 repo agreements -0.2 -10% 1.7
Slide 19: Liabilities and shareholders’ equity
Liabilities and shareholders’ equity CHF billions (rounded) 45.4 +1.3 +3% Customer deposits – Increase despite 44.1 Due to banks and repo unattractive interest rates on deposits 2.7 -0.2 -4% 2.9 agreements Shareholders’ equity – Steady increase 30.5 Customer deposits +1.3 +4% 29.2 Bonds and mort
Slide 20: Assets under management
Assets under management CHF billions (rounded) Assets under management +1% Net new money of +CHF 2.3bn 85.4 4.2 -5.3 86.5 Piguet 2.3 5.5 5.8 Galland Performance of +CHF 4.2bn (+5%) 79.9 80.7 Negative impact of Swisscanto assets BCV (-CHF 5.3bn) transferred to ZKB, with almost no effect on reve
Slide 21: New calculation method for capital ratios
New calculation method for capital ratios Previous calculation method New calculation method1 17.1% 16.4%2 3.4% 3.4% 13.7% 13.0% 0.7% SNB Countercyclical buffer 1.0% FINMA temporary add- 1.0% FINMA temporary add- on for interest rate risk on for interest rate risk 12.0% FINMA capital requirement 12.
Slide 22: Capital ratios
Capital ratios CHF billions (rounded) Risk-weighted assets and CET1 capital ratio RWAs CET1 capital ratio FINMA minimum target CET1 capital ratio Eligible CET1 capital Leverage ratio Declined as a result of higher RWAs, mainly on residential mortgages – driven up by 18.1% 18.3% volume growth and t
Slide 23: Liquidity ratio
Liquidity ratio CHF millions (rounded) HQLAs Net cash outflows LCR Minimum requirement Increase in the LCR by roughly 6 percentage points since end-2015 Composition of Bank’s HQLAs: 116.9% 110.4% − 65% as cash deposited with the SNB 109.8% 109.7% 105.7% 106.9% − 35% as AAA and AA-Swiss-issued se
Slide 24: Recap of our distribution policy since 2008
Recap of our distribution policy since 2008 Barring any significant changes in the economic or regulatory environment or the Bank's situation Horizon 1 Horizon 2 From 2008 to 2012 From 2013 to 2017 Ordinary CHF 20 to CHF 25 Ordinary CHF 22 to CHF 27 dividend per share dividend per share + + Special
Slide 25: Dividends to be paid in 2018 (based on 2017 earnings)
Dividends to be paid in 2018 (based on 2017 earnings) CHF per share Horizon 1 Horizon 2 2008-2012 2013-2017 Same distribution policy applied consistently since 2008, despite: 33 ‒ A major financial crisis 32 32 32 32 32 33 33 30 31 ‒ Uncertainty and costs created by the “US 10 10 10 10 10 10 10 10
Slide 26: Distribution policy extended for another five years with a higher range
Distribution policy extended for another five years with a higher range Horizon 1 Horizon 2 Horizon 3 From 2008 to 2012 From 2013 to 2017 From 2018 to 2022 Ordinary CHF 20 to CHF 25 Ordinary CHF 22 to CHF 27 dividend per share dividend per share CHF 34 to CHF 38 per share + + Ordinary dividend In li
Slide 27: Agenda
Agenda Introduction FY 2017 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Full-Year 2017 Financial Results 27
Slide 28: Swiss and Vaud GDP growth
ETTRE A JOUR Swiss and Vaud GDP growth As a % Swiss GDP (source: SECO1) Vaud GDP (source: CREA2) In 2017: Swiss and Vaud GDP growth estimates were revised downwards, to Estimate as at levels lower than in 2016 January 2018 3.0 2.9 Stronger economic growth expected in 2.8 Switzerland and Vaud in
Slide 29: Real estate in the Vaud region
Real estate in the Vaud region Transaction prices in Vaud (Basis 100 in Dec. 2004) Apartments Single homes 220 Vaud real-estate market has been cooling 197 198 198 -1.4% down since 2014 200 195 190 176 In 2017, prices on Vaud real-estate 180 189 170 -4.2% 167 169 163 163 transactions increased s
Slide 30: 2018 Outlook
2018 Outlook 2018 business trends in line with 2017 Revenues still under pressure mainly because of low interest rates Continued firm control of operating expenses Operating profit expected to be similar to 2017 After-tax capital gain of CHF 27m to be booked in H1 2018 Full-Year 2017 Financial Resul
Slide 31: 2018 Calendar
2018 Calendar 17 August 2017 15 February 2018 27 March 2018 26 April 2018 Half-year 2017 Full-year 2017 Publication of the Annual results results 2017 Annual Report Shareholders’ Meeting in Lausanne 1.0 30 April 2018 2 May 2018 3 May 2018 23 August 2018 Ex-dividend date1 Dividend record Dividend pay
Slide 32: Appendices
Appendices & BCV
Slide 33: Income statement
Income statement CHF millions (rounded) FY 2017 FY 2016 Abs % Interest and discount income 576.4 599.0 -22.6 -4 Interest and dividend income from financial investments 34.7 40.3 -5.6 -14 Interest expense -113.3 -156.7 -43.4 -28 Net interest income before loan impairment charges/reversals 497.8 482.5
Slide 34: Balance sheet
Balance sheet CHF millions (rounded) 31 Dec. 2017 31 Dec. 2016 Abs % Cash and cash equivalents 8,044 7,496 549 7 Due from banks 1,013 1,373 -360 -26 Reverse repurchase agreements 499 306 194 63 Loans and advances to customers 4,826 4,812 14 0 Mortgage loans 25,407 25,037 370 1 Trading portfolio asse
Slide 35: Key performance indicators
Key performance indicators 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2013 2014 2015 2016 2017 Impaired loans/ 0.9% 0.7% 0.7% 0.7% 0.7% credit exposure Asset quality Customer deposits/ and balance 96% 96% 98% 98% 101% loans to customers1 sheet structure Interest margin 1.23% 1.22% 1.14% 1.11% 1.12% CET
Slide 36: BCV share
BCV share Per share (CHF) Stock price 22.7 23.6 23.0 23.6 20.8 21.6 21.3 760 18.2 18.2 18.9 18.2 740 17.8 Operating 735.00 profit 720 EPS 700 680 660 0 H1 H2 H1 H2 H1 H2 1 Jan. 2017 30 Mar. 2017 30 Jun. 2017 30 Sep. 2017 31 Dec. 2017 2015 2015 2016 2016 2017 2017 Key figures 31 Dec. 31 Dec. 31 Dec.
Slide 37: BCV Investor Relations iPad App
BCV Investor Relations iPad App The 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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