Banque Cantonale Vaudoise · SIX:BCVN

Banque Cantonale Vaudoise — FY2015 Earnings Presentation

34 slides from Banque Cantonale Vaudoise's earnings presentation, Feb 18, 2016

  1. Slide 1: 2015 Full-Year Results Analysts' Presentation

    2015 Full-Year Results Analysts’ Presentation 18 February 2016

  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 2015 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Full-Year 2015 Financial Results 3

  4. Slide 4: Key messages

    Key messages Revenues up 2%, spurred by an excellent trading performance, and despite negative-interest-rate environment Net profit up 14%, driven in part by the sale of BCV’s stake in Swisscanto 1.0 Satisfactory outcome on USA/Switzerland tax program Proposal to increase the dividend by CHF 1, from

  5. Slide 5: 2015 key figures

    2015 key figures CHF (rounded)1,2 Revenues Operating profit Net profit 1.03bn 399m 336m +2% +5% +14% 1.0 Total assets AuM 43.4bn 88.0bn +4% +2% Note (1) Using new Swiss GAAP for banks (2) 2014 figures were adjusted to facilitate like-for-like comparison Full-Year 2015 Financial Results 5

  6. Slide 6: Main business trends

    Main business trends CHF millions (rounded)1,2 Mortgage loans Savings deposits AuM +2% +1% +2% 24,045 24,522 16,626 16,800 86,382 87,972 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2014 2015 2014 2015 2014 2015 0.5 0.5 0.5 Other loans Other client deposits Net new money -13% +1% 5,675 11,906 12,

  7. Slide 7: Other key events

    Other key events Non-prosecution agreement signed with CHF 275m distributed to shareholders in the US Department of Justice, including April the payment of a settlement of USD 41.7m by the Bank S&P reaffirmed its AA rating for the fifth year running 1.0 0.5 Reto Donatsch re-elected as member of Mood

  8. Slide 8: Retail Banking

    Retail Banking CHF millions (rounded)1,2 Mortgage loans Customer deposits +2% +2%  Controlled growth in mortgage loans 7,391 7,571 8,267 8,396  Continued rise in customer deposits, but at a slower pace 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2014 2015 2014 2015  Increase in revenues and operating profit

  9. Slide 9: Corporate Banking

    Corporate Banking CHF millions (rounded)1,2 Loans/off-BS commitments Customer deposits -5% +7%  SMEs 15,463 14,739 7,639 8,148 − Rise in mortgage loans (+2%) and slight rise in loans and advances (+0.3%) − Customer deposits up 8.6%  Large Corporates − Decrease in business volumes 31 Dec. 31 Dec. 3

  10. Slide 10: Wealth Management

    Wealth Management CHF millions (rounded)1,2 AuM Mortgage loans +1% +4%  Business trend continued: 67,614 68,251 6,881 7,173 − Contraction in offshore volumes, as expected − Robust development in onshore activities  Institutional AM: Net new assets high, especially in the German-speaking part of 31

  11. Slide 11: Trading

    Trading CHF millions (rounded)1,2 VaR vs. Annual revenues 6 70  Strong increase in customer-driven forex trading: 4 Annual revenues 40 − Following the SNB’s decision to drop the CHF/EUR floor 2 10 − Solid business development VaR (99%, 1-day)  Increase in structured products activity (revenues up

  12. Slide 12: Agenda

    Agenda Introduction FY 2015 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Full-Year 2015 Financial Results 12

  13. Slide 13: New accounting rules applying

    New accounting rules applying "Old" Swiss banking GAAP "New" Swiss banking GAAP Interest income Interest income Interest expense Interest expense Net interest income Net interest income before loan impairment charges/reversals Loan impairment charges/reversals Loan impairment Net interest income (NI

  14. Slide 14: Income statement

    Income statement CHF millions (rounded)1,2 FY 2014 FY 2015 Change Total income from ordinary banking operations 1,010 1,026 +16 +2% Operating expenses -518 -514 -4 -1% Depreciation & amortization of fixed assets and impairment on equity investments -80 -76 -4 -5% Other provisions and losses -34 -37

  15. Slide 15: Total income from banking operations

    Total income from banking operations CHF millions (rounded)1,2 Total income from ordinary banking operations 1,026 +16 +2%  NII – Income under pressure due to 1,010 negative rates, but decrease limited through appropriate balance-sheet management 521 490 Net interest income -31 -6%  Commissions &

  16. Slide 16: Operating expenses and amortization

    Operating expenses and amortization CHF millions (rounded)1,2 598 590 -8 -1%  Continued firm control of operating expenses − Over the last 3 years, operating expenses 179 177 Other operating expenses -2 -1% have dropped 0.6% p.a. on average  Amortization and depreciation continuously down since th

  17. Slide 17: Headcount

    Headcount Full-time equivalent at period-end  Stable headcount at Group level +56 -41 +1 1,987  Over the last 4 years, continuous decrease 1,931 1,946 1,947 in headcount at the Parent Company on a 214 218 205 213 Subsidiaries like-for-like basis (i.e., adjusted for the integration of 80 IT special

  18. Slide 18: Assets

    Assets CHF billions (rounded)1,2 43.4 +1.6 +4%  Cash and equivalents – Increase in 41.8 liquidity deposited with SNB following fund 5.0 6.9 Cash and equivalents +1.9 +38% inflows Due from banks and reverse 1.9 2.1 repo agreements +0.2 +10%  Loans and advances to customers – Loans and advances Decr

  19. Slide 19: Liabilities

    Liabilities CHF billions (rounded)1,2 43.4 +1.6 +4%  Due to banks – Fund inflows 41.8 Due to banks and repo 3.0 +0.9 +40% 2.1 agreements  Customer deposits – Funds from individual and corporate clients stable  Bonds – Increase in borrowings in order to manage long-term liquidity requirements and

  20. Slide 20: Assets under management

    Assets under management CHF millions (rounded)1,2 Assets under management +2% 87,972  AuM up to CHF 88.0bn 86,382 -911 Piguet 2,502 7,000 6,008 Galland  Negative impact of foreign-currency translation on the back of the Swiss-franc 79,382 81,964 rise BCV 31 Dec. Net new Performance 31 Dec. 2014 mo

  21. Slide 21: Capital ratios

    Capital ratios CHF billions (rounded) Risk-weighted assets and CET1 ratio RWAs Eligible capital CET1 ratio Minimum requirement Phased-in CET1 ratio  Increase in ratio due to lower RWAs and higher eligible capital 17.8% 17.8% 17.6% 17.1% 17.1% 17.0% Look-through CET1 ratio  Includes specific IRB mu

  22. Slide 22: Liquidity ratio

    Liquidity ratio CHF millions (rounded) HQLAs Net cash outflows LCR Minimum requirement The LCR for all BCV Group currencies combined increased in 2015 109.7% 111.1% HQLAs 106.5% 104.6% 104.9%  Cash deposited with the SNB makes up more than 60% of the Bank’s HQLAs  The remaining HQLAs are primarly

  23. Slide 23: Distribution policy

    Distribution policy CHF per share Distribution policy Distribution policy  Distribution policy since 2008 2008 - 2012 2013 - 2018 32 32 32 32 32 33  Proposal at 2016 AGM: Increase in the total 30 31 distribution to CHF 33 per share, i.e., 10 10 10 10 10 10 CHF 23 as an ordinary dividend and Specia

  24. Slide 24: Agenda

    Agenda Introduction FY 2015 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Full-Year 2015 Financial Results 24

  25. Slide 25: Swiss and Vaud GDP

    ETTRE A JOUR Swiss and Vaud GDP As a % Swiss GDP (source: SECO) Vaud GDP (source: Créa)  In 2015: Growth in Swiss and Vaud GDP was impacted by relative strength of the Estimate as of Swiss franc and global economic slowdown July 2015 4.0 3.6  Forecast for 2016: Slight recovery 3.5 3.4 depending on

  26. Slide 26: Real estate in the Vaud region

    Real estate in the Vaud region Transaction prices in Vaud (Basis 100 in Dec. 2004) Apartments Single homes  Moderate growth in real estate since 2013 205  In 2015, prices on real-estate transactions 198 -2% were slightly down 200 197 195 195 − -3.8% on single homes 190 − -1.8% on apartments 185 18

  27. Slide 27: 2016 Outlook

    2016 Outlook 2016 business trend in line with 2015 Revenues under pressure – expected to come in lower than in 2015  Interest income still impacted by negative rates  Income from commissions & fees dependent on financial-market trend  2016 trading income likely below record 2015 level 1.0  No ex

  28. Slide 28: 2016 Calendar

    2016 Calendar Beginning this year, BCV will report its financial results on a half-yearly rather than a quarterly basis, which means that only results at 30 June and 31 December will be released. 12 November 2015 18 February 2016 1 April 2016 21 April 2016 Third-quarter 2015 Full-year 2015 Publicati

  29. Slide 29: Appendices

    Appendices « BCV

  30. Slide 30: Income statement

    Income statement CHF millions (rounded)1,2 FY 2015 FY 2014 Abs % Interest and discount income 628.7 652.5 -23.8 -4 Interest and dividend income from financial investments 47.4 54.2 -6.8 -13 Interest expense -186.9 -202.4 -15.5 -8 Net interest income before loan impairment charges/reversals 489.2 504

  31. Slide 31: Balance sheet

    Balance sheet CHF millions (rounded)1,2 31 Dec. 2015 31 Dec. 2014 Abs % Cash and cash equivalents 6,861 4,960 1,901 38 Due from banks 1,810 1,482 328 22 Reverse repurchase agreements 280 415 -135 -33 Loans and advances to customers 4,935 5,675 -740 -13 Mortgage loans 24,522 24,045 477 2 Trading port

  32. Slide 32: Key performance indicators

    Key performance indicators 2011 2012 2013 2014 2015 Impaired loans/ 1.3% 1.2% 0.9% 0.7% 0.7% credit exposure Asset quality Customer deposits/ and balance 90% 95% 96% 96% 98% loans to customers1,2 sheet structure Interest margin 1.48% 1.33% 1.23% 1.22% 1.14% CET1 ratio 13.2% 14.4% 17.8% 17.1% 17.6% E

  33. Slide 33: BCV share

    BCV share Per share (CHF) Stock price 22.7 23.6 636.50 22.1 21.9 640 20.8 17.8 18.2 620 16.6 Operating profit 600 EPS 580 560 540 0 H1 H2 H1 H2 1 Jan. 2015 1 Apr. 2015 1 Jul. 2015 1 Oct. 2015 31 Dec. 2015 2014 2014 2015 2015 Key figures 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2015 2014 2013 2012 201

  34. Slide 34: 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

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