Banque Cantonale Vaudoise · SIX:BCVN

Banque Cantonale Vaudoise — FY2022 Earnings Presentation

36 slides from Banque Cantonale Vaudoise's earnings presentation, Feb 9, 2023

1. Slide 1: 2022 Full-Year Results

   2022 Full-Year Results Analysts’ presentation 9 February 2023 1

2. 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

3. Slide 3: Agenda

   Agenda Introduction FY 2022 financial results Conclusion Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Full-Year 2022 Financial Results 3

4. Slide 4: Key messages

   Key messages Revenues up 3% at CHF 1bn Net profit up 3% to a record CHF 388m Proposal to increase the dividend to CHF 3.80 per share New 2023–2027 distribution horizon with a higher distribution range Full-Year 2022 Financial Results 4

5. Slide 5: FY 2022 key figures

   FY 2022 key figures CHF (rounded) Revenues Operating profit Net profit 1.0bn 448m 388m +3% +4% +3% 1.0 Total assets AuM 59.4bn 108.9bn +6% -4% Full-Year 2022 Financial Results 5

6. Slide 6: Main business trends

   Main business trends CHF millions (rounded) Mortgage loans Sight deposits1,2 AuM +4% -8% -4% 29,373 30,425 15,306 112,887 108,879 14,087 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2021 2022 2021 2022 2021 2022 0.5 0.5 0.5 Other loans Other client deposits2 Net new money 0% +6% +2,995 6,209 6,20

7. Slide 7: New Board member appointments

   New Board member appointments Board of Directors Executive Board Stefan Fuchs appointed by Christian Steinmann the Vaud Government as appointed to BCV’s member of the Board of Executive Board as head of Directors and chair of the the Private Banking Audit and Risk Committee, Division as of 1 Novembe

8. Slide 8: Other highlights in 2022

   Other highlights in 2022 “Most recommended Added to STOXX Europe bank” in Vaud Canton for 600 in September the fourth year in a row, according to the LINK research institute Added to MSCI World in November Obtained ISAE 3402 certification, attesting to CHF 318m distributed to shareholders in the qua

9. Slide 9: Very solid financial and ESG ratings

   Very solid financial and ESG ratings Financial ratings  Financial ratings reaffirmed. BCV is one of AA (stable) since 2011 the 20 best rated banks in the world without an explicit government guarantee Aa2 (stable) since 2015 ESG ratings  Tied for best rating among Swiss cantonal banks Upgrade to A

10. Slide 10: Retail Banking

    Retail Banking CHF millions (rounded)1 Mortgage loans Customer deposits +4% +5%  Continuing rise in mortgage loans in a 9,260 9,613 11,139 11,722 dynamic real-estate market  Continuing cash inflows from customers 31 Dec. 31 Dec. 31 Dec. 31 Dec.  Revenues and operating profit up 2021 2022 2021 202

11. Slide 11: Corporate Banking

    Corporate Banking CHF millions (rounded)1 Loans/off-BS commitments Customer deposits 0% -1%  SMEs 18,571 18,568 12,591 12,455  Loans/off-BS commitments up 2%  Covid-19 bridge-loan repayments of almost CHF 150m in 2022 (ca. 50% of total Covid loanbook paid off)  Deposits up 4%  Real-estate firms

12. Slide 12: Wealth Management

    Wealth Management CHF millions (rounded)1 AuM Mortgage loans -7% +3%  AuM lower due to negative market 83,169 77,575 8,323 8,570 performance, partially offset by NNM from both private banking and institutional clients  Continuing rise in mortgage loans in a dynamic real-estate market 31 Dec. 31 De

13. Slide 13: Trading

    Trading CHF millions (rounded)1 Revenues Operating profit +4% +3%  Trading activity essentially client-driven 56 58 29 30  Forex trading up sharply on high volatility – forex accounted for more than 68% of overall Trading revenues FY FY FY FY 2021 2022 2021 2022  Activity in structured products s

14. Slide 14: Agenda

    Agenda Introduction FY 2022 financial results Conclusion Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Full-Year 2022 Financial Results 14

15. Slide 15: Income statement

    Income statement CHF millions (rounded) FY 2021 FY 2022 Change Total income from ordinary banking operations 1,005 1,039 +34 +3% Operating expenses -505 -517 +12 +2% Depreciation & amortization of fixed assets and impairment on -72 -70 -2 -3% equity investments Other provisions and losses 1 -5 +6 +9

16. Slide 16: Total income from banking operations

    Total income from banking operations CHF millions (rounded) Total income from ordinary banking operations 1,039 +34 +3%  Net interest income – Stable 1,005  Commissions & fees – Down on bearish 464 464 Net interest income +0 +0% financial markets and low Trade Finance activity 343 Commissions & fe

17. Slide 17: Operating expenses, depreciation and amortization

    Operating expenses, depreciation and amortization CHF millions (rounded) 586 +9 +2%  Slight increase in personnel costs 577  Other operating expenses back to their pre-pandemic level mainly reflecting the resumption of cultural and sporting events supported by the Bank after a 2-year pause due to

18. Slide 18: Headcount

    Headcount Full-time equivalents at period-end -26 +25 -12 +23 +25  Increase in total headcount in the parent 1,957 company and subsidiaries 1,922 1,921 1,909 1,932 1,896 197 192 194 200 Subsidiaries 196 189 1.0 Parent 1,725 1,700 1,729 1,720 1,738 1,757 company 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 De

19. Slide 19: Assets

    Assets CHF billions (rounded) 59.4 +3.4 +6%  Cash and equivalents – Increase in SNB 56.0 sight deposits 12.9 Cash and equivalents +0.3 +3%  Loans and advances to customers – 12.6 Due from banks and reverse Stable, as increased SME lending offset 1.3 repo agreements +0.2 +14% Covid-19 bridge loan r

20. Slide 20: Liabilities and equity

    Liabilities and equity CHF billions (rounded) 59.4 +3.4 +6%  Slower growth in customer deposits 56.0 +2.2 +44% 7.0 Due to banks  Bonds and mortgage-backed bonds – 4.8 Increase in debt issued by the cantonal banks' Swiss Pfandbriefzentrale  Shareholders’ equity – Ongoing increase 38.4 Customer dep

21. Slide 21: Assets under management

    Assets under management CHF billions (rounded) Assets under management -3.6%  AuM down 3.6% to CHF 108.9bn 112.9 +3.0  Market performance of -CHF 7.0bn Piguet -7.0 108.9 Galland 6.6 (-6.2%) 6.2  Net new money of CHF 3.0bn from all BCV 106.3 102.7 client segments (+2.7%) 31 Dec. Net new Performanc

22. Slide 22: 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  CET1 ratio up to 17.6% due to:  Increase in retained earnings 17.7% 17.6% 18  Lower credit-risk RWA 17.1% 17.1% 17.1% 17.2% 16  Requireme

23. Slide 23: Liquidity ratio (LCR)

    Liquidity ratio (LCR) CHF billions (rounded) HQLAs1 LCR Minimum requirement  LCR decreased by almost 14 points vs. H1 Net cash outflows1 2022 mainly due to higher cash outflows 156.7% 145.0%  LCR closer to target range and well above 143.3% 136.1% the minimum requirement of 100% 129.5% 129.0%  Co

24. Slide 24: Net Stable Funding Ratio (NSFR)

    Net Stable Funding Ratio (NSFR) CHF billions (rounded) Available stable funding (ASF)1 NSFR Minimum requirement  Minimum requirement of 100% took effect on Required stable funding (RSF)1 1 July 2021 124.3% 124.5% 125.2% 124.4% 121.6%  NSFR stable 100% 37.6 37.5 38.5 35.5 36.9 29.6 30.0 30.9 31.0 2

25. Slide 25: 2022 dividend

    2022 dividend CHF per share 3.80 3.70  Current dividend policy (2018-2022) 3.60 3.60 3.50  Applicable as of the 2018 dividend  Between CHF 3.40 and CHF 3.80 per share  Proposal at 2023 AGM: increase the ordinary dividend to CHF 3.80 per share 1.0 (CHF +0.10)  Total payout: CHF 327m  84% of 202

26. Slide 26: Distribution policy extended for another five years with a higher range

    Distribution policy extended for another five years with a higher range Dividend per share in CHF Payout ratio in % 2008–2012 2013–2017 2018–2022 2023–2027 Distribution range CHF 3.00–3.50 CHF 3.20–3.70 CHF 3.40–3.80 CHF 3.80–4.20 3.80 Distribution policy extended using the same approach: • Distribu

27. Slide 27: Agenda

    Agenda Introduction FY 2022 financial results Conclusion Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Full-Year 2022 Financial Results 27

28. Slide 28: Swiss and Vaud GDP growth

    ETTRE A JOUR Swiss and Vaud GDP growth In % Swiss GDP (source: SECO1) Vaud GDP (source: CREA2)  In 2022: inflation, rising interest rates and the geopolitical situation weighed on growth Estimate at estimates, which were progressively revised January 2023 downwards 5.0 4.0 3.9 4.0 3.7 3.0 2.5 ~2.7

29. Slide 29: Real estate in Vaud

    Real estate in Vaud Transaction prices in Vaud (Basis 100 in Dec. 2012) Apartments Single homes 140  Continuing increase in Vaud real-estate transaction prices since 2017, with a slight 130 +7% +6% deceleration in recent months 120  Still dynamic real-estate market in 2022 110  Transaction prices

30. Slide 30: 2023 Outlook

    2023 Outlook Easing pressure on income as interest rates return to positive territory, but financial markets still gloomy and uncertain and Trade Finance activity reduced due to the geopolitical situation Business activity in line with previous years, provided the macro environment and financial mar

31. Slide 31: Appendices

    Appendices « BCV

32. Slide 32: Income statement

    Income statement CHF millions (rounded) FY 2022 FY 2021 Abs % Interest and discount income 524.5 480.5 +44.0 +9 Interest and dividend income from financial investments 21.4 18.0 +3.4 +19 Interest expense -84.2 -26.0 +58.3 +224 Net interest income before loan impairment charges/reversals 461.7 472.6

33. Slide 33: Balance sheet

    Balance sheet CHF millions (rounded) 31 Dec. 2022 31 Dec. 2021 Abs % Cash and cash equivalents 12,916 12,600 +316 +3 Due from banks 1,187 952 +234 +25 Reverse repurchase agreements 79 158 -79 -50 Loans and advances to customers 6,201 6,209 -9 -0 Mortgage loans 30,425 29,373 +1,052 +4 Trading portfol

34. Slide 34: Key performance indicators

    Key performance indicators 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2018 2019 2020 2021 2022 Impaired loans/ 0.6% 0,5% 0.5% 0.4% 0.4% credit exposure Customer deposits/ Asset quality 99% 101% 105% 107% 105% loans to customers and balance sheet structure Liquidity Coverage Ratio (LCR) 113% 129% 136% 1

35. Slide 35: BCV share

    BCV share Per share (CHF)1 Stock price (CHF) 5.0 5.2 100 BCV SPI Index (rebased) 4.7 4.9 Operating 4.3 4.4 4.5 profit 88.75 4.1 4.2 3.8 90 EPS 80 70 60 0 2018 2019 2020 2021 2022 1 Jan. 2022 30 Jun. 2022 31 Dec. 2022 Key figures 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2018 2019 2020 2021 2022 Number

36. Slide 36: Calendar

    Calendar 9 February 2023 4 April 2023 4 May 2023 8 May 2023 Full-year 2022 Publication of the Annual Ex-dividend date1 results 2022 Annual Report Shareholders’ Meeting in Lausanne 1.0 9 May 2023 10 May 2023 17 August 2023 Dividend record Dividend payment1 Half-year 2023 date1 results Note (1) Total

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