Banque Cantonale Vaudoise · SIX:BCVN
Banque Cantonale Vaudoise — H1 2014 Earnings Presentation
27 slides from Banque Cantonale Vaudoise's earnings presentation, Aug 21, 2014
Slide 1: 2014 Half-Year Results: Analysts' Presentation
2014 Half-Year Results Analysts’ Presentation Lausanne, 21 August 2014 &f 1
Slide 2: Agenda
Agenda • Introduction Pascal Kiener • HY 2014 financial results Thomas Paulsen • Outlook Pascal Kiener 2
Slide 3: Highlights
Highlights Good development in main business lines Revenues solid and slightly up Rise in operating and net profit 3
Slide 4: H1 2014 key figures
H1 2014 key figures CHF millions (rounded), unaudited figures Change vs. 2013 Revenues 503 +1% Operating profit 239 +1% Net profit 154 +2% Total assets 41,240 +2% AuM 86,323 +3% 4
Slide 5: Main business trends in H1 2014
Main business trends in H1 2014 CHF millions (rounded), unaudited figures Controlled increase in mortgage +320 +1% loans Increase in other loans1 +4 +0% Continued increase in savings +251 +2% deposits Increase in other client deposits +178 +1% Increase in AuM +2,473 +3% Net new money in onshore +546
Slide 6: Other key events in H1 2014
Other key events in H1 2014 • Distribution of CHF 275m to shareholders in May • Moody’s re-affirmed its long-term rating on BCV and changed its standalone rating outlook from stable to positive • S&P’s re-affirmed its AA long-term rating on BCV • Ingrid Deltenre elected as member of the Board of dir
Slide 7: Retail Banking
Retail Banking CHF millions (rounded)1 2013 2014 • Ongoing expansion in business volumes 7,198 7,293 8,019 8,210 • Controlled increase in mortgage lending, in line with our target +1.3% +2.4% growth rate • Productivity on the rise Mortgage Customer • Increase in revenues and operating loans deposits
Slide 8: Corporate Banking
Corporate Banking CHF millions (rounded)1 2013 2014 • SMEs – Rise in lending (+2.6%) and 15,168 15,092 customer deposits (+8.6%) • Large Corporates 7,234 7,402 +2.3% -0.5% – Volatility in treasury flows (lending: -2.1%, deposits: -8.7%) – Focus on profitability Loans / Off- Deposits • Trade Finance
Slide 9: Wealth Management
Wealth Management CHF millions (rounded)1 2013 2014 • Continuing growth in onshore activities offsets contraction in 65,386 67,685 6,616 6,713 offshore volumes • Institutional AM: positive NNM and +3.5% +1.5% higher management fees • Lower transaction volumes compared to the same period in AuM Mortg
Slide 10: Trading
Trading CHF millions (rounded)1 2013 2014 • Lower forex and structured products volumes due to low market volatility 29 24 18 • Revenues and operating profit fall 13 -20% -31% back to “normal” levels • Trading activity is mostly Revenues Operating customer-driven profit 6 60 Annual revenues 4 40 2 2
Slide 11: Agenda
Agenda • Introduction Pascal Kiener • HY 2014 financial results Thomas Paulsen • Outlook Pascal Kiener 11
Slide 12: Income statement
Income statement CHF millions (rounded), unaudited figures H1 2014 H1 2013 Change Total revenues 503 498 +4.6 +1% Operating expenses -263 -261 +2.5 +1% Operating profit 239 237 +2.1 +1% Depreciation and write-offs -41 -44 -3.0 -7% Value adjustments, -7 -7 -0.2 -3% provisions & losses Extraordinary i
Slide 13: Revenues
Revenues CHF millions (rounded), unaudited figures 498 503 +1% Interest income up on firm business development Interest 248 253 +2% Low-interest-rate environment coupled with cautious stance on liquidity management Commis- sions and Commissions slightly up thanks to 173 174 +1% fees market performan
Slide 14: Operating expenses
Operating expenses CHF millions (rounded), unaudited figures 261 263 +1% Other operating 95 91 -3% expenses Operating expenses under strict control: down on a like-for-like basis. Increase in reported personnel costs linked to the transfer of 80 IT specialists to Personnel BCV in July 2013 costs 166
Slide 15: Headcount
Headcount Full-time equivalents at period-end +56 -19 1,987 1,968 1,931 Subsidiaries 214 206 218 Headcount stable following the integration of 80 IT specialists in 2013 second Parent half 1,713 1,773 1,762 company 31/12/12 31/12/13 30/06/14 15
Slide 16: Provisions and Extraordinary income
Provisions and Extraordinary income CHF millions (rounded), unaudited figures +1 +7 -7 +6 0 Net releases Miscella- Total Total value Value of provisions neous extraordinary adjustments, adjustments, for credit risk income provisions & provisions & losses losses and Extraordinary income 16
Slide 17: Assets
Assets CHF billions (rounded), unaudited figures Cash and equivalents 41.2 +2% and money-market 40.5 instruments 5.1 +8% Cautious stance on liquidity 4.7 management Due from banks 1.6 1.8 +9% Loans and 5.4 5.4 +0% advances to customers Mortgage 23.7 Controlled growth in 23.4 +1% loans mortgage loans
Slide 18: Liabilities
Liabilities CHF billions (rounded), unaudited figures 40.5 41.2 +2% Due to banks 2.0 2.2 +14% Savings 12.8 13.1 +2% Continued fund inflows, in particular from private customers and corporates Other customer accounts, 15.5 15.7 +1% medium-term notes Borrowings Increase in borrowings to 6.1 6.4 +5% ma
Slide 19: Assets under management (AuM)
Assets under management (AuM) CHF billions (rounded), unaudited figures 86.3 +3% 83.9 Piguet 7.0 7.2 Galland Net new money of CHF 51m • Continuing onshore inflows (+CHF 546m) Parent company, 76.7 79.3 • Offshore outflows (-CHF 495m) Gérifonds, GEP 31/12/13 30/06/14 19
Slide 20: Key ratios
Key ratios Unaudited figures 2010 2011 2012 2013 30/06/14 Impaired loans/ credit exposure 1.6% 1.3% 1.2% 0.9% 0.8% Asset quality and Customer deposits/ balance loans to customers 94% 93% 98% 98% 99% sheet structure Interest margin 1.48% 1.48% 1.33% 1.23% 1.22% CET1 ratio 17.6% 16.8% 18.4% 17.8% 17.1
Slide 21: Agenda
Agenda • Introduction Pascal Kiener • HY 2014 financial results Thomas Paulsen • Outlook Pascal Kiener 21
Slide 22: Swiss and Vaud GDP
Swiss and Vaud GDP Swiss and Vaud GDP (in %) Estimate as of July 2013 3.5 3.3 3.3 3.0 2.9 3.0 2.6 2.5 2.6 2.5 2.2 2.2 2014 growth estimate 2.0 2.0 1.8 2.0 • Switzerland +2.0%1 1.5 1.2 1.0 1.0 • Vaud +2.5%2 0.5 0.0 2008 2009 2010 2011 2012 2013 2014E 2015E -0.5 -0.5 Forecast for 2015 -1.0 • Switzerla
Slide 23: Real estate in the Vaud region
Real estate in the Vaud region Transaction prices in Vaud (Basis 100 in Dec. 2004) • Stabilization of housing 200 197 prices in Vaud over the last three quarters in the 190 189 context of continued low 176 180 interest rates 170 170 167 154 160 • BCV’s moderate growth 158 strategy unchanged 150 144
Slide 24: Outlook
Outlook • Revenue trend going forward largely dependent Business trend in H2 2014 on yield curve expected to be in line with H1 20141 • Continued rigorous control of operating expenses 24 1 P rovided that the macro-economic situation and the financial markets do not deteriorate significantly
Slide 25: 2014-2015 calendar
2014-2015 calendar • 13 November 2014 Third-quarter 2014 operating profit press release • 19 February 2015 Full-year 2014 results • 23 April 2015 First-quarter 2015 operating profit press release • 23 April 2015 Annual Shareholders’ Meeting in Lausanne 25
Slide 26: 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
Slide 27: 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
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