Banque Cantonale Vaudoise · SIX:BCVN
Banque Cantonale Vaudoise — H1 2021 Earnings Presentation
32 slides from Banque Cantonale Vaudoise's earnings presentation, Aug 19, 2021
Slide 1: 2021 Half-Year Results
2021 Half-Year Results Analysts’ presentation 19 August 2021
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 HY 2021 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Half-Year 2021 Financial Results 3
Slide 4: Key messages
Key messages Increase in revenue by 3% mainly driven by fee and commission income and new mortgage loans Continued strict cost control, in line with previous years Operating profit up 13% year on year to CHF 203m, and net profit up 10% to CHF 173m Half-Year 2021 Financial Results 4
Slide 5: HY 2021 key figures
HY 2021 key figures CHF (rounded), unaudited figures Revenues Operating profit Net profit 493m 203m 173m +3% +13% +10% 1.0 Total assets AuM 55.6bn 110.2bn +4% +7% Half-Year 2021 Financial Results 5
Slide 6: Main business trends
Main business trends CHF millions (rounded), unaudited figures Mortgage loans Sight deposits1,2 AuM +2% +2% +7% 28'037 28'678 14'794 15'038 110'215 103'159 31 Dec. 30 Jun. 31 Dec. 30 Jun. 31 Dec. 30 Jun. 2020 2021 2020 2021 2020 2021 0.5 0.5 0.5 Other loans Other client deposits2 Net new money +5% +
Slide 7: Other highlights
Other highlights AA rating from S&P Publication of our 2020 with a stable outlook Sustainability Report, in line with GRI standards and available in both Aa2 rating from French and English Moody’s with a stable outlook CHF 310m distributed to shareholders in May for the 2020 fiscal year; i.e., CHF 3
Slide 8: Retail Banking
Retail Banking CHF millions (rounded)1 Mortgage loans Customer deposits +3% +11% Continuing rise in mortgage loans focused 8'639 8'882 11'105 on certain regions in a dynamic real-estate 9'982 market Strong traction in asset allocation funds 31 Dec. 30 Jun. 31 Dec. 30 Jun. 2020 2021 2020 2021 C
Slide 9: Corporate Banking
Corporate Banking CHF millions (rounded)1 Loans/off-BS commitments Customer deposits +1% -1% SMEs and real-estate clients 18'278 18'448 11'426 11'296 Various factors show resilience of Vaud SMEs: Overall stability in credit limits granted/ drawn down Approx. 10% of the Covid-19 bridge loans pa
Slide 10: Wealth Management
Wealth Management CHF millions (rounded)1 AuM Mortgage loans +9% +2% Increase in AuM 81'142 8'180 74'708 8'012 NNM from both private banking and institutional clients Positive performance of financial markets Increase in mortgage loans in a dynamic 31 Dec. 30 Jun. 31 Dec. 30 Jun. real-estate
Slide 11: Trading
Trading CHF millions (rounded) Revenues Operating profit 0% +4% Robust activity in structured products 30 30 16 17 segment, with revenues up 57%, which offset lower forex trading Forex trading down 29% from a strong H1 2020, but still accounted for more than 50% of Trading revenues H1 H1 H1 H1 2
Slide 12: Agenda
Agenda Introduction HY 2021 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Half-Year 2021 Financial Results 12
Slide 13: Income statement
Income statement CHF millions (rounded), unaudited figures H1 2020 H1 2021 Change Total income from ordinary banking operations 477 493 +16 +3% Operating expenses -253 -256 +3 +1% Depreciation & amortization of fixed assets and impairment on -37 -37 -0 -0% equity investments Other provisions and los
Slide 14: Total income from banking operations
Total income from banking operations CHF millions (rounded), unaudited figures Total income from ordinary banking operations 493 +16 +3% Net interest income – Slightly down 477 Commissions & fees – Up thanks to the 229 227 Net interest income -2 -1% good momentum in private and institutional wea
Slide 15: Operating expenses, depreciation and amortization
Operating expenses, depreciation and amortization CHF millions (rounded), unaudited figures 293 +3 +1% Continued firm control of operating 290 expenses Personnel costs up following the transfer of 20 IT specialists 178 Personnel costs +5 +3% Other operating expenses down mainly 173 thanks to l
Slide 16: Headcount
Headcount Full-time equivalents at period-end -21 +31 Increase in total headcount due to the -26 +25 -12 insourcing of 20 IT specialists from IBM 1,943 1,922 1,921 1,909 1,940 1,896 204 197 192 189 187 Subsidiaries 196 1.0 Parent 1'739 1'725 1'700 1'729 1'720 1'754 company 31 Dec. 31 Dec. 31 Dec.
Slide 17: Assets
Assets CHF billions (rounded), unaudited figures 55.6 +2.4 +4% Cash and equivalents – SNB sight 53.2 deposits stable at a high level 11.7 Cash and equivalents +0.1 +1% Loans and advances to customers – 11.6 Slightly up thanks to progressive recovery in Due from banks and reverse Trade Finance ac
Slide 18: Liabilities and equity
Liabilities and equity CHF billions (rounded), unaudited figures 55.6 +2.4 +4% Due to banks – Slightly up in connection 53.2 with treasury management 5.9 Due to banks +0.2 +3% 5.7 Customer deposits – Continued strong increase from individuals and SMEs Bonds and mortgage-backed bonds – Bond iss
Slide 19: Assets under management
Assets under management CHF billions (rounded) Assets under management +7% AuM up 7% to CHF 110.2bn 110.2 103.2 +4.0 6.2 Net new money of CHF 3.1bn Piguet +3.1 5.7 Galland BCV 97.5 104.0 Market performance of CHF 4.0bn 31 Dec. Net new Performance 30 Jun. 2020 money 2021 Net new money Onshore
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 Decrease in the CET1 ratio to 17.0% due to higher RWAs, mainly related to: 17.5% 17.7% 17.0% 18 Higher business volumes in Trade 17.1% 17.
Slide 21: Liquidity ratio (LCR)
Liquidity ratio (LCR) CHF millions (rounded) HQLAs1 LCR Minimum requirement Optimization of treasury management Net cash outflows1 pushed up LCR by 9 points vs. H2 2020 145.0% 136.1% Composition of the Bank’s HQLAs 129.5% 129.5% 76%: cash deposited with the SNB 112.3% 115.9% 24%: mainly Swis
Slide 22: Agenda
Agenda Introduction HY 2021 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Half-Year 2021 Financial Results 22
Slide 23: Swiss and Vaud GDP growth
ETTRE A JOUR Swiss and Vaud GDP growth In % Swiss GDP (source: SECO1) Vaud GDP (source: CREA2) 2020 recession was not as bad as expected: Vaud GDP contracted by 1.8% (vs. -5.5% as Estimate at expected in May 2020, or -3.4% as estimated July 2021 in Feb. 2021) 5.0 4.1 4.0 3.6 3.1 3.2 3.0 In 2021:
Slide 24: Real estate in Vaud
Real estate in Vaud Transaction prices in Vaud (Basis 100 in Jun. 2010) Apartments Single homes 150 150 Continuing increase in Vaud real-estate 141 140 transaction prices since 2017 139 140 134 130 133 132 130 130 132 Up 3.7% p.a. on average on apartments 130 125 121 121 124 Up 4.3% p.a. on av
Slide 25: 2021 Outlook
2021 Outlook Revenue growth still constrained by persistent negative-rate environment Continued firm control of operating expenses 1.0 Operating profit and net earnings in line with H1 2021 trend, provided the macro environment does not worsen Half-Year 2021 Financial Results 25
Slide 26: Appendices
Appendices & BCV
Slide 27: Income statement
Income statement CHF millions (rounded), unaudited figures H1 2021 H1 2020 Abs % Interest and discount income 241.9 262.4 -20.5 -8 Interest and dividend income from financial investments 9.2 12.8 -3.6 -28 Interest expense -14.6 -33.4 -18.8 -56 Net interest income before loan impairment charges/rever
Slide 28: Balance sheet
Balance sheet CHF millions (rounded), unaudited figures 30 Jun. 2021 31 Dec. 2020 Abs % Cash and cash equivalents 11,696 11,550 146 1 Due from banks 2,408 1,347 1,061 79 Reverse repurchase agreements 193 236 -43 -18 Loans and advances to customers 6,087 5,812 275 5 Mortgage loans 28,678 28,037 642 2
Slide 29: Key performance indicators
Key performance indicators 31 Dec. 31 Dec. 31 Dec. 31 Dec. 30 Jun. 2017 2018 2019 2020 2021 Impaired loans/ 0.7% 0.6% 0.5% 0.5% 0.5% credit exposure Customer deposits/ Asset quality 101% 99% 101% 105% 107% loans to customers and balance sheet structure Liquidity Coverage Ratio (LCR) 121% 113% 129% 1
Slide 30: BCV share
BCV share Per share (CHF)1 Stock price (CHF) 2.4 2.4 2.4 105 2.3 Operating 2.1 2.1 2.1 2.0 profit 2.0 1.8 100 EPS 95 90 85 83.10 0 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 1 Jan. 2021 31 Mar. 2021 30 Jun. 2021 Key figures 31 Dec. 31 Dec. 31 Dec. 31 Dec. 30 Jun. 2017 2018 2019 2020 2021 Number of issu
Slide 31: Calendar
Calendar 18 February 2021 29 April 2021 19 August 2021 17 February 2022 Full-year 2020 Annual Half-year 2021 Full-year 2021 results Shareholders’ results results Meeting in Lausanne 1.0 5 April 2022 5 May 2022 18 August 2022 Publication of the Annual Half-year 2022 2021 Annual Report Shareholders’ r
Slide 32: BCV Investor Relations iPad App
BCV Investor Relations iPad1 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 Press releases Annual and interim repo
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