BCGE Group half-year results
as at 30 June 2024
I BCGE Group half-year results as at 30 June 2024
2 Highlights
Stable figures following record result in 2023
Thanks to excellent business momentum, BCGE can report a stable result after a record year in 2023. Assets under management and administration grew by 3.8% to CHF 36.6 billion, while client receivables and mortgage loans rose by 3.5% to CHF 19.9 billion. Both the operating profit of CHF 137 million (-0.3%) and the net profit of CHF 116 million (-0.7%) proved to be robust. Equity increased by a further 3% to CHF 2.2 billion, with an equity coverage ratio of 16.7%, well above the prescribed 12.7%. The results for the first half of the year reflect the Group's ability to create lasting value for its clients and shareholders. The annual results for 2024 will be published on 11 March 2025.
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Resilient operating profit and net profit
Because of its strategic positioning, the Bank was able to benefit from both the domestic and international dynamics of the Geneva economy. Following the record result for the 2023 financial year, the operating profit of CHF 137 million (-0.3%) and net profit of CHF 116 million (-0.7%) proved to be remarkably stable.
The Group recorded an increase in revenues, rising 3.1% to total CHF 300 million. Its revenues are well diversified, with a net interest income of CHF 197 million, a commission income of CHF 73 million and a trading income of CHF 20 million. The 22% share of turnover in EUR and USD demonstrates the international orientation of the BCGE Group's business lines.
Operating expenses of CHF 150 million (+5.9%) reflect the Bank's business momentum as it continues to expand its teams and press ahead with its investments in digitalisation, security and the energy transition. The Group's workforce grew by 25 new positions and now totals 942 employees (full-time equivalents).
- An increase in lending
The Bank currently grants corporate and private clients a total of CHF 19.9 billion in loans, which corresponds to an increase of 3.5%. Of this total, CHF 13.7 billion is in mortgage loans and CHF 6.2 billion in other client loans. Mortgage loans account for 44% of the balance sheet total and demonstrate a broad diversification of assets. The Bank serves more than 250,000 clients; among them are 22,489 companies that place their trust in BCGE.
- An increase in assets under management and administration
Assets under management and administration rose by 3.8% to CHF 36.6 billion, demonstrating BCGE's business success. This increase is due in particular to discretionary management mandates and Synchrony investment funds, which account for CHF 15.7 billion of this total. Overall, the inflow of new client assets from private and corporate clients totalled CHF 352 million.
- Continued increase in equity capital
Equity rose by CHF 65 million in the first half of the year and currently stands at CHF 2.249 billion. At 16.7%, the consolidated equity ratio is well above the prescribed value of 12.7%. BCGE thus belongs to the circle of well-capitalised banks, as evidenced by the AA-/A-1+/stable rating confirmed by S&P on 27/10/23.
- A stable shareholder base
The number of private and institutional shareholders remains stable with 15,233 shareholders at 30 June 2024, including 14,842 private shareholders. The free float is widely distributed, with 83% of shareholders holding between 1 and 50 shares.
- A strong rise in share price
BCGE's share price rose by a whopping 29% in the first half of the year and stood at CHF 290.00 at the end of the reporting period. Market capitalisation is thus gradually approaching the equity value of CHF 312.30.
- Outlook for 2024
For 2024, barring a major downturn in the economy, the Bank expects results to be slightly below those of 2023, a record year.
I BCGE Group half-year results as at 30 June 2024 | ||||||
Highlights | ||||||
3 | ||||||
Key consolidated figures for the first half of 2024 | ||||||
Results (in CHF thousands) | 30/06/2024 | 30/06/2023 | Variation 2024 vs. 2023 | |||
Operating income | 299,609 | 290,602 | 9,007 | 3.1% | ||
Operating expenses | 150,061 | 141,647 | 8,414 | 5.9% | ||
Operating profit | 136,639 | 137,008 | (369) | (0.3%) | ||
Half-year profit | 116,024 | 116,873 | (849) | (0.7%) | ||
ROE (operating profit to equity) | 12.42% | 13.63% | (121 basis points) | (8.9%) | ||
Balance sheet volumes (in CHF thousands) | 30/06/2024 | 31/12/2023 | ||||
Total assets | 31,251,100 | 30,269,565 | 981,535 | 3.2% | ||
Mortgage loans | 13,685,075 | 13,119,557 | 565,518 | 4.3% | ||
Assets under management and administration | 36,612,526 | 35,264,056 | 1,348,470 | 3.8% | ||
Shareholders' equity | 2,248,558 | 2,183,526 | 65,032 | 3.0% | ||
Tier 1 capital ratio | 15.88% | 16.08% | (20 basis points) | (1.3%) | ||
Ratio of regulatory capital available | 16.67% | 17.01% | (34 basis points) | (2.0%) | ||
Staff (full-time equivalents) | 942 | 917 | 25 | 2.7% |
I BCGE Group half-year results as at 30 June 2024
- Consolidated balance sheet - BCGE Group
ASSETS | 30.06.2024 | 31.12.2023 | Variation | Variation |
CHF thousand | CHF thousand | CHF thousand | in % | |
Liquid assets | 6,934,360 | 6,710,001 | 224,359 | 3.3 |
Amounts due from banks | 827,775 | 700,448 | 127,327 | 18.2 |
Amounts due from securities financing transactions | 151,250 | 389,992 | (238,742) | (61.2) |
Amounts due from customers | 6,196,260 | 6,082,003 | 114,257 | 1.9 |
Mortgage loans | 13,685,075 | 13,119,557 | 565,518 | 4.3 |
Trading portfolio assets | 86,892 | 63,335 | 23,557 | 37.2 |
Positive replacement values of derivative financial instruments | 13,115 | 22,595 | (9,480) | (42.0) |
Financial investments | 2,899,855 | 2,648,593 | 251,262 | 9.5 |
Accrued income and prepaid expenses | 83,711 | 66,870 | 16,841 | 25.2 |
Participations | 71,096 | 72,044 | (948) | (1.3) |
Tangible fixed assets | 109,399 | 107,237 | 2,162 | 2.0 |
Other assets | 192,312 | 286,890 | (94,578) | (33.0) |
Total assets | 31,251,100 | 30,269,565 | 981,535 | 3.2 |
Total subordinated claims | 48,768 | 48,090 | 678 | 1.4 |
of which subject to mandatory conversion and / or debt waiver | - | - | - | - |
LIABILITIES | 30.06.2024 | 31.12.2023 | Variation | Variation |
CHF thousand | CHF thousand | CHF thousand | in % | |
Amounts due to banks | 3,574,162 | 2,084,209 | 1,489,953 | 71.5 |
Liabilities from securities financing transactions | 75,000 | 100,000 | (25,000) | (25.0) |
Amounts due in respect of customer deposits | 19,962,298 | 20,449,267 | (486,969) | (2.4) |
Trading portfolio liabilities | 103,675 | 2,728 | 100,947 | 3,700.4 |
Negative replacement values of derivative financial instruments | 10,874 | 30,826 | (19,952) | (64.7) |
Cash bonds | 3,239 | 3,282 | (43) | (1.3) |
Bond issues and central mortgage institution loans | 4,690,535 | 4,719,535 | (29,000) | (0.6) |
Accrued expenses and deferred income | 141,883 | 151,661 | (9,778) | (6.4) |
Other liabilities | 433,354 | 536,716 | (103,362) | (19.3) |
Provisions | 7,522 | 7,815 | (293) | (3.7) |
Reserves for general banking risks | 290,000 | 290,000 | - | - |
Bank's capital | 360,000 | 360,000 | - | - |
Statutory capital reserve | 283,774 | 291,315 | (7,541) | (2.6) |
Statutory retained earnings reserve | 1,246,568 | 1,059,968 | 186,600 | 17.6 |
Currency translation reserve | (32,239) | (36,545) | 4,306 | (11.8) |
Own shares (negative item) | (15,569) | (12,452) | (3,117) | 25.0 |
Profit/loss (result of the period) | 116,024 | 231,240 | (115,216) | (49.8) |
Total liabilities | 31,251,100 | 30,269,565 | 981,535 | 3.2 |
Total subordinated liabilities | 241,535 | 241,535 | - | - |
of which subject to mandatory conversion and / or debt waiver | 241,535 | 241,535 | - | - |
OFF-BALANCE-SHEETS TRANSACTIONS | 30.06.2024 | 31.12.2023 | Variation | Variation |
CHF thousand | CHF thousand | CHF thousand | in % | |
Contingent liabilities | 965,789 | 1,028,702 | (62,913) | (6.1) |
Irrevocable commitments | 908,706 | 976,413 | (67,707) | (6.9) |
Obligations to pay up shares and make further contributions | 287,278 | 272,183 | 15,095 | 5.5 |
Credit commitments | 54,638 | 18,453 | 36,185 | 196.1 |
I BCGE Group half-year results as at 30 June 2024 | ||||||
Consolidated income statement - BCGE Group | ||||||
5 | ||||||
30.06.2024 | 30.06.2023 | Variation | Variation | |||
CHF thousand | CHF thousand | CHF thousand | in % | |||
RESULT FROM INTEREST OPERATIONS | ||||||
Interest and discount income | 316,596 | 263,821 | 52,775 | 20.0 | ||
Interest and dividend income from trading portfolios | 35 | 108 | (73) | (67.6) | ||
Interest and dividend income from financial investments | 14,436 | 7,690 | 6,746 | 87.7 | ||
Interest expense | (129,821) | (78,695) | (51,126) | 65.0 | ||
Gross result from interest operations | 201,246 | 192,924 | 8,322 | 4.3 | ||
Changes in value adjustments for default risks and losses from interest operations | (4,619) | (5,944) | 1,325 | (22.3) | ||
Subtotal net result from interest operations | 196,627 | 186,980 | 9,647 | 5.2 | ||
RESULT FROM COMISSION BUSINESS AND SERVICES | ||||||
Commission income from securities trading and investment activities | 34,494 | 30,725 | 3,769 | 12.3 | ||
Commission income from lending activities | 19,307 | 19,514 | (207) | (1.1) | ||
Commission income from other services | 23,063 | 21,763 | 1,300 | 6.0 | ||
Commission expense | (4,140) | (4,676) | 536 | (11.5) | ||
Subtotal result from comission business and services | 72,724 | 67,326 | 5,398 | 8.0 | ||
RESULT FROM TRADING ACTIVITIES AND THE FAIR VALUE OPTION | ||||||
Subtotal result from trading activities and the fair value option | 19,753 | 17,788 | 1,965 | 11.0 | ||
OTHER RESULT FROM ORDINARY ACTIVITIES | ||||||
Result from the disposal of financial investments | 6,079 | 9,470 | (3,391) | (35.8) | ||
Income from participations | 5,424 | 5,402 | 22 | 0.4 | ||
Result from real estate | 574 | 600 | (26) | (4.3) | ||
Other ordinary income | 2,525 | 3,302 | (777) | (23.5) | ||
Other ordinary expenses | (4,097) | (266) | (3,831) | 1,440.2 | ||
Subtotal other result from ordinary activities | 10,505 | 18,508 | (8,003) | (43.2) | ||
Total operating income | 299,609 | 290,602 | 9,007 | 3.1 | ||
OPERATING EXPENSES | ||||||
Personnel expenses | (91,179) | (86,660) | (4,519) | 5.2 | ||
General and administrative expenses | (58,882) | (54,987) | (3,895) | 7.1 | ||
Subtotal operating expenses | (150,061) | (141,647) | (8,414) | 5.9 | ||
Value adjustments on participations and depreciation | (11,738) | (11,067) | (671) | 6.1 | ||
and amortisation of tangible fixed assets and intangible assets | ||||||
Changes to provisions and other value adjustments, and losses | (1,171) | (880) | (291) | 33.1 | ||
Operating result | 136,639 | 137,008 | (369) | (0.3) | ||
Extraordinary income | 11 | 602 | (591) | (98.2) | ||
Extraordinary expenses | - | (49) | 49 | (100.0) | ||
Changes in reserves for general banking risks | - | - | - | - | ||
Taxes | (20,626) | (20,688) | 62 | (0.3) | ||
Profit/loss (result of the period) | 116,024 | 116,873 | (849) | (0.7) | ||
of which minority interests in profit & loss account | - | - | - | - |
I BCGE Group half-year results as at 30 June 2024
- Consolidated statement of changes in equity - BCGE Group
CHF thousand | Bank's | Statutory | Statutory | Reserves | Currency | Own | Result | Total |
capital | capital | retained | for | trans- | shares | of the | ||
reserve | earnings | general | lation | (negative | period | |||
reserve | banking | reserve | item) | |||||
risks | ||||||||
Equity at start of current period | 360,000 | 291,315 | 1,059,968 | 290,000 | (36,545) | (12,452) | 231,240 | 2,183,526 |
Acquisition of own shares | (14,801) | (14,801) | ||||||
Disposal of own shares | 14,986 | 14,986 | ||||||
Profit (loss) on disposal of own shares | 3,302 | (3,302) | - | |||||
Currency translation differences | 4,306 | 4,306 | ||||||
Dividends and other distributions | 677 | (46,800) | (46,123) | |||||
Special allocation to the State of Geneva | (9,360) | (9,360) | ||||||
(20% of dividends paid) | ||||||||
Other allocations to (transfers from) | - | |||||||
the reserves for general banking risks | ||||||||
Other allocations to (transfers from) other reserves | (11,520) | 186,600 | (175,080) | - |
Profit / loss (result of the period)
116,024
116,024
Equity at end of current period
360,000 283,774 1,246,568
290,000 (32,239) (15,569)
116,024 2,248,558
Condensed notes - BCGE Group
Detail of extraordinary income and expenses
30.06.2024 | 30.06.2023 | |
CHF thousand | CHF thousand | |
Extraordinary income | ||
Residual extraordinary profit from a dispute with an | ||
IT service provider, resolved at the end of 2022 | 0 | 450 |
Proceeds from the sale of immaterial securities | 0 | 139 |
Sale of a building | 0 | 0 |
Other | 11 | 13 |
Total | 11 | 602 |
Extraordinary expenses | ||
Non-operationg expenses | ||
Other | 0 | (49) |
Total | 0 | (49) |
- Highlights
The highlights on pages 2 to 3 provide information on the economic factors that influenced the results under review and their changes from the previous year.
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The amount of mortgage loans and client receivables, corresponding to the 2023 financial year, has been adjusted to conform to the presentation of the figures for the 2024 financial year.
Change in the scope of consolidation: the Bank has registered a subsidiary in Hong Kong, 100% owned by the Bank, under
the name: BCGE (Asia) Company Limited. On 8 February 2024, the Securities & Futures Commission of Hong Kong granted this subsidiary authorisation to carry on regulated broker and adviser activities.
- Post-balancesheet event: on 1 July 2024, the Bank acquired 100% of the shares in the representative company Mont-Fort Funds AG. The company acts as a representative of foreign funds in Switzerland. It will be consolidated by BCGE Group from the date of acquisition.
Disclaimer
- Banque Cantonale de Genève. This document should not be considered as an offer, recommendation, advice (in particular investment advice) or solicitation to buy, sell or transfer the mentioned financial securities or any other related financial instrument. Nor does it constitute a "financial analysis" as defined in the "Guidelines for independent financial analysis" of the Swiss Bankers Association. Before making a decision, the reader should consult a specialist in the respective tax, accounting, real estate or other professional field. The information contained in this document is not intended to replace or substitute for legal, real estate, tax or other advice, consultation or service. Banque Cantonale de Genève cannot guarantee the accuracy, completeness or reliability of the information contained in this document, as it is provided for informational purposes only and is subject to change without notice. Therefore, any investment decision made by the reader is his or her own responsibility. This document is not intended for natural or legal persons who, because of their nationality, their place of residence or for any other reason, are subject to jurisdictions which might prohibit or limit its use. The services, products and financial services mentioned in this document are not offered to persons residing in the United States of America and are not otherwise available in the United States of America. Only the French version shall be binding.
communication@bcge.ch
I BCGE Group half-year results as at 30 June 2024
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