Banque Cantonale Vaudoise · SIX:BCVN
Banque Cantonale Vaudoise — H1 2016 Earnings Presentation
32 slides from Banque Cantonale Vaudoise's earnings presentation, Aug 18, 2016
Slide 1: 2016 Half-Year Results – Analysts' Presentation
2016 Half-Year Results Analysts’ Presentation 18 August 2016
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 H1 2016 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Half-Year 2016 Financial Results 3
Slide 4: Key messages
Key messages Resilience and stability in a challenging environment Revenues down 6%, due to persisting negative-interest-rate environment, decline in customer trading volumes and trading revenues returning to typical levels 1.0 Operating profit robust: down only 2% thanks to firm cost control and lo
Slide 5: H1 2016 key figures
H1 2016 key figures CHF (rounded)1,2, unaudited figures Revenues Operating profit Net profit 494m 198m 157m -6% -2% -13% 1.0 Total assets AuM 44.7bn 87.4bn +3% -1% Note (1) Using new Swiss GAAP for banks (2) 2015 figures were adjusted to facilitate like-for-like comparison Half-Year 2016 Financial R
Slide 6: Main business trends
Main business trends CHF millions (rounded)1,2, unaudited figures Mortgage loans Savings deposits AuM +1% -1% -1% 24,522 24,761 16,800 16,651 87,972 87,446 31 Dec. 30 Jun. 31 Dec. 30 Jun. 31 Dec. 30 Jun. 2015 2016 2015 2016 2015 2016 0.5 0.5 0.5 Other loans Other client deposits Net new money -3% -5
Slide 7: Other highlights
Other highlights Jack Clemons elected as member of the CHF 284m distributed to shareholders in Board of Directors at the last AGM April Peter Ochsner appointed to the Board of AA rating from S&P since 2011 1.0 Directors by the Vaud Cantonal 0.5 Government Moody’s reaffirmed BCV’s long-term deposit r
Slide 8: Retail Banking
Retail Banking CHF millions (rounded)1,2 Mortgage loans Customer deposits +1% -6% Moderate growth in mortgage loans 7,571 7,655 8,401 7,904 Customer deposits down following the end of the online brokerage partnership with PostFinance; excluding PostFinance, deposits up slightly 31 Dec. 30 Jun. 3
Slide 9: Corporate Banking
Corporate Banking CHF millions (rounded)1,2 Loans/off-BS commitments Customer deposits +2% -5% SMEs 14,882 15,223 8,166 7,774 − Stable trend in mortgage loans (+0.3%) and in other loans and advances (+0.8%) − Customer deposits up 4% Normal up-and-down business trend in Large Corporates 31 Dec. 3
Slide 10: Wealth Management
Wealth Management CHF millions (rounded)1,2 AuM Mortgage loans 0% +2% Recent business trends continued in H1 68,251 68,050 7,173 7,299 2016: − Contraction in offshore volumes, as expected − Robust development in onshore activities Strong decrease in client trading volumes 31 Dec. 30 Jun. 31 Dec.
Slide 11: Trading
Trading CHF millions (rounded)1,2 Revenues Operating profit -8% -18% Drop in customer-driven trading from the 35 21 32 record level seen in 2015 following the 17 SNB’s decision to drop the CHF/EUR floor Revenues down 8% and operating profit down 18%, but still at high levels H1 H1 H1 H1 2015 201
Slide 12: Agenda
Agenda Introduction H1 2016 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Half-Year 2016 Financial Results 12
Slide 13: Income statement
Income statement CHF millions (rounded)1,2, unaudited figures H1 2015 H1 2016 Change Total income from ordinary banking operations 526.3 494.1 -32.2 -6% Operating expenses -258.5 -258.2 -0.3 0% Depreciation & amortization of fixed assets and impairment on equity investments -38.7 -37.1 -1.6 -4% Othe
Slide 14: Total income from banking operations
Total income from banking operations CHF millions (rounded)1,2, unaudited figures Total income from ordinary banking operations 526 NII – Income under pressure due to 494 -32 -6% persisting negative rates, but decrease limited through appropriate balance-sheet 254 243 Net interest income managemen
Slide 15: Operating expenses, depreciation and amortization
Operating expenses, depreciation and amortization CHF millions (rounded)1,2, unaudited figures 297 295 -2 -1% Continued firm control of operating expenses 88 87 Other operating expenses -1 -1% Depreciation and amortization continuously down since the integration in 2013 of 80 IT specialists prev
Slide 16: Headcount
Headcount Full-time equivalents at period-end Stable headcount at Group level +56 -41 +1 -19 1,987 Continued decrease in headcount at the 1,931 1,946 1,947 1,928 parent company on a like-for-like basis 214 218 205 213 207 Subsidiaries (integration of 80 IT specialists in 2013) 1.0 1,773 Parent 1
Slide 17: Assets
Assets CHF billions (rounded)1,2, unaudited figures 44.7 +1.3 +3% Cash and equivalents – Increase in SNB 43.4 sight deposits following fund inflows 7.2 Cash and equivalents +0.3 +4% 6.9 Loans and advances to customers – Due from banks and reverse 2.1 2.7 repo agreements +0.6 +28% Down as a resul
Slide 18: Liabilities and equity
Liabilities and equity CHF billions (rounded)1,2, unaudited figures 44.7 +1.3 +3% Customer deposits – Down following end 43.4 of online brokerage partnership with Due to banks and repo 3.0 4.6 +1.6 +55% PostFinance; up slightly like-for-like agreements Bonds – Bond issue of CHF 150m and increase
Slide 19: Assets under management
Assets under management CHF millions (rounded)1,2, unaudited figures Assets under management -1% AuM down slightly to CHF 87.4bn 87,972 87,446 2 -529 Piguet 6,008 Galland 5,538 Negative impact of market performance 81,964 81,908 BCV 31 Dec. Net new Performance 30 Jun. 2015 money 2016 Net new mon
Slide 20: Capital ratios
Capital ratios CHF billions (rounded) Risk-weighted assets and CET1 ratio RWAs CET1 ratio LT minimum target ratio FINMA minimum target Eligible capital FINMA minimum target Temporarily increased from 12% to 13% on 1 Jan. 2016 17.8% 17.1% 17.1% 17.6% Takes into account a temporary capital 17.0% 1
Slide 21: Liquidity ratio
Liquidity ratio CHF millions (rounded) HQLAs Net cash outflows LCR Minimum requirement LCR decreased by roughly 5 percentage points 60% of the Bank’s HQLAs consisted of 111.1% 113.9% cash deposited with the SNB 109.7% 104.9% 105.9% Remaining HQLAs comprised AAA and AA- Swiss-issued securities
Slide 22: Agenda
Agenda Introduction H1 2016 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Half-Year 2016 Financial Results 22
Slide 23: Swiss and Vaud GDP growth
ETTRE A JOUR Swiss and Vaud GDP growth As a % Swiss GDP (source: SECO1) Vaud GDP (source: CREA2) In 2016: Growth estimates for Swiss and Vaud GDP were revised downwards Estimate as at following the Brexit vote, but global July 2016 economic recovery set to continue 3.5 3.4 3.0 3.0 3.0 Economic d
Slide 24: Real estate in the Vaud region
Real estate in the Vaud region Transaction prices in Vaud (Basis 100 in Dec. 2004) Apartments Single homes Ongoing deceleration in Vaud real estate since 2013 205 200 197 198 In H1 2016, prices on real-estate 195 -0.4% 195 transactions were slightly down 194 190 − -0.9% on single homes 185 189 −
Slide 25: 2016 Outlook
2016 Outlook 2016 business trends in line with H1 2016 Revenues under pressure – expected to come in lower than in 2015 Net interest income still impacted by negative interest rates Income from commissions & fees dependent on financial-market trends 2016 trading income below record 2015 level
Slide 26: 2017 Calendar
2017 Calendar 18 February 2016 21 April 2016 18 August 2016 16 February 2017 Full-year 2015 Annual Half-year 2016 Full-year 2016 results Shareholders’ results results Meeting in Lausanne 1.0 27 April 2017 Annual Shareholders’ Meeting in Lausanne Half-Year 2016 Financial Results 26
Slide 27: Appendices
Appendices & BCV
Slide 28: Income statement
Income statement CHF millions (rounded)1,2, unaudited figures H1 2016 H1 2015 Abs % Interest and discount income 302.1 316.1 -14.0 -4 Interest and dividend income from financial investments 21.9 24.1 -2.2 -9 Interest expense -82.2 -93.2 -11.0 -12 Net interest income before loan impairment charges/re
Slide 29: Balance sheet
Balance sheet CHF millions (rounded)1,2, unaudited figures 30 Jun. 2016 31 Dec. 2015 Abs % Cash and cash equivalents 7,152 6,861 291 4 Due from banks 2,399 1,810 589 33 Reverse repurchase agreements 276 280 -4 -1 Loans and advances to customers 4,696 4,935 -239 -5 Mortgage loans 24,761 24,522 239 1
Slide 30: Key performance indicators
Key performance indicators 31 Dec. 31 Dec. 31 Dec. 31 Dec. 30 Jun. 2012 2013 2014 2015 2016 Impaired loans/ 1.2% 0.9% 0.6% 0.6% 0.6% credit exposure Asset quality Customer deposits/ and balance- 95% 96% 96% 98% 96% loans to customers1,2 sheet structure Interest margin 1.33% 1.23% 1.22% 1.14% 1.11% C
Slide 31: BCV share
BCV share Per share (CHF) Stock price 22.8 23.5 22.9 23.0 21.2 20.8 700 17.8 18.2 18.2 16.6 Operating profit 652.50 650 EPS 600 0 H1 H2 H1 H2 H1 1 Jan. 2016 28 Feb. 2016 30 Apr. 2016 30 Jun. 2016 2014 2014 2015 2015 2016 Key figures 31 Dec. 31 Dec. 31 Dec. 31 Dec. 30 Jun. 2012 2013 2014 2015 2016 Nu
Slide 32: 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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