Banque Cantonale Vaudoise · SIX:BCVN
Banque Cantonale Vaudoise — FY2021 Earnings Presentation
33 slides from Banque Cantonale Vaudoise's earnings presentation, Feb 17, 2022
Slide 1: 2021 Full-Year Results
2021 Full-Year Results Analysts’ presentation 17 February 2022 1
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 FY 2021 financial results Conclusion Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Full-Year 2021 Financial Results 3
Slide 4: Key messages
Key messages Stronger economic growth and buoyant financial markets in 2021 helped boost business volumes Revenues up 6%, surpassing the CHF 1bn mark Net profit up 14% to a record CHF 379m Proposal to increase the dividend to CHF 3.70 per share Full-Year 2021 Financial Results 4
Slide 5: FY 2021 key figures
FY 2021 key figures CHF (rounded) Revenues Operating profit Net profit 1.0bn 429m 379m +6% +15% +14% 1.0 Total assets AuM 56.0bn 112.9bn +5% +9% Full-Year 2021 Financial Results 5
Slide 6: Main business trends
Main business trends CHF millions (rounded) Mortgage loans Sight deposits1,2 AuM +5% +3% +9% 28,037 29,373 14,794 15,306 112,887 103,159 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2020 2021 2020 2021 2020 2021 0.5 0.5 0.5 Other loans Other client deposits2 Net new money +7% +11% +5,733 6,209 22
Slide 7: Other highlights
Other highlights AA rating from S&P with “Most recommended a stable outlook bank” in Vaud Canton for the third year in a row, according to the LINK Aa2 rating from Moody’s research institute with a stable outlook CHF 310m distributed to Piguet Galland named best shareholders in May for the 2020 priv
Slide 8: Retail Banking
Retail Banking CHF millions (rounded)1 Mortgage loans Customer deposits +6% +9% Continuing rise in mortgage loans in a 8,908 9,409 11,367 dynamic real-estate market 10,411 Unchanged mortgage policy Higher growth in areas with lower vacancy rates 31 Dec. 31 Dec. 31 Dec. 31 Dec. Continuing, st
Slide 9: Corporate Banking
Corporate Banking CHF millions (rounded)1 Loans/off-BS commitments Customer deposits +2% +11% SMEs and real-estate clients 18,278 18,600 11,426 12,676 Lending up 3% Deposits up 4% More than 20% of Covid-19 bridge loans paid back Large Corporates Loans / off-balance-sheet commitments 31 D
Slide 10: Wealth Management
Wealth Management CHF millions (rounded)1 AuM Mortgage loans +11% +5% Strong increase in AuM 82,727 8,109 74,279 7,743 NNM from both private banking and institutional clients Positive performance of financial markets Robust increase in mortgage loans 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2020 2021
Slide 11: Trading
Trading CHF millions (rounded) Revenues Operating profit +6% +15% Revenues and operating profit up, at high 53 56 29 levels 26 Very strong traction in structured products segment, with revenues up 69% FY FY FY FY 2020 2021 2020 2021 Forex trading down 16% compared with a strong 2020 Revenues t
Slide 12: Agenda
Agenda Introduction FY 2021 financial results Conclusion Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Full-Year 2021 Financial Results 12
Slide 13: Income statement
Income statement CHF millions (rounded) FY 2020 FY 2021 Change Total income from ordinary banking operations 945 1,005 +60 +6% Operating expenses -495 -505 +10 +2% Depreciation & amortization of fixed assets and impairment on -72 -72 -0 -0% equity investments Other provisions and losses -5 1 -6 -113
Slide 14: Total income from banking operations
Total income from banking operations CHF millions (rounded) Total income from ordinary banking operations 1,005 +60 +6% Net interest income – Up 945 Commissions & fees – Up thanks to the 464 Net interest income +5 +1% good momentum in financial markets and 459 the gradual uptick in Trade Finance
Slide 15: Operating expenses, depreciation and amortization
Operating expenses, depreciation and amortization CHF millions (rounded) 567 577 +10 +2% Continued firm control of operating expenses Personnel costs up following the transfer of 20 IT specialists in H1 2021. Excluding that transfer, personnel costs increased by 349 Personnel costs 1.4% 339 +10
Slide 16: Headcount
Headcount Full-time equivalents at period-end -21 -26 -12 Increase in total headcount mainly due to +25 +23 the insourcing of 20 IT specialists from IBM 1,943 1,922 1,921 1,932 1,896 1,909 in H1 2021 204 197 192 189 194 Subsidiaries 196 1.0 Parent 1,739 1,725 1,700 1,729 1,720 1,738 company 31 Dec
Slide 17: Assets
Assets CHF billions (rounded) 56.0 +2.8 +5% Cash and equivalents – SNB sight 53.2 deposits up due to strong customer cash inflows 12.6 Cash and equivalents +1.0 +9% 11.6 Loans and advances to customers – Up Due from banks and reverse 1.1 repo agreements -0.5 -30% thanks to gradual uptick in Trad
Slide 18: Liabilities and equity
Liabilities and equity CHF billions (rounded) 56.0 +2.8 +5% Due to banks – Down in connection with 53.2 continued strong increase in customer 4.8 Due to banks -0.9 -16% deposits 5.7 Bonds and mortgage-backed bonds – Bond issues of CHF 150m in April and CHF 125m in December under favorable market
Slide 19: Assets under management
Assets under management CHF billions (rounded) Assets under management +9% AuM up 9% to CHF 112.9bn 112.9 +4.0 Piguet 103.2 +5.7 6.6 Net new money from all business segments 5.7 Galland BCV 97.5 106.3 Market performance of CHF 4.0bn 31 Dec. Net new Performance 31 Dec. 2020 money 2021 Net new m
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 CET1 ratio down, to 17.2 %, vs. requirement of 13.0% 17.5% 17.7% 17.2% 18 Higher business volumes 17.1% 17.1% 17.1% 16 Leverage ratio 13.7
Slide 21: Liquidity ratio (LCR)
Liquidity ratio (LCR) CHF millions (rounded) HQLAs1 LCR Minimum requirement Optimization of treasury management pushed Net cash outflows1 up LCR by almost 12 points vs. H1 2021 156.7% 145.0% Composition of the Bank’s HQLAs 136.1% 77%: cash deposited with the SNB 129.5% 129.5% 23%: mainly Swi
Slide 22: Net Stable Funding Ratio (NSFR)
Net Stable Funding Ratio (NSFR) CHF millions (rounded) Available stable funding (ASF)1 NSFR Minimum requirement Minimum requirement of 100% came into Required stable funding (RSF)1 force on 1 July 2021 124.3% 124.5% 125.2% NSFR increased by almost 1 point, mainly due to inflows from retail and c
Slide 23: 2021 dividend
2021 dividend CHF per share Ordinary dividend Tax-exempt distribution Current dividend policy (2018-2022) 3.70 Applicable as of the 2018 dividend 3.50 3.60 3.60 3.30 3.30 3.30 Between CHF 3.40 and CHF 3.80 per 3.20 3.20 3.20 3.20 3.20 3.00 3.10 share 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.0
Slide 24: Agenda
Agenda Introduction FY 2021 financial results Conclusion Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Full-Year 2021 Financial Results 24
Slide 25: Swiss and Vaud GDP growth
ETTRE A JOUR Swiss and Vaud GDP growth In % Swiss GDP (source: SECO1) Vaud GDP (source: CREA2) Strong rebound in the economy in 2021. Swiss and Vaud GDP increased by 3.3% and Estimate at 4.5%, respectively Jan. 2022 5.0 4.4 4.5 4.0 3.6 3.3 In 2022: uncertainty about the evolution of 3.0 the pand
Slide 26: Real estate in Vaud
Real estate in Vaud Transaction prices in Vaud (Basis 100 in Dec. 2011) Apartments Single homes 135 131 Continuing increase in Vaud real-estate 130 transaction prices since 2017 +6% 125 +10% Up 3.9% p.a. on average on apartments 120 115 Up 5.8% p.a. on average on single-family 110 homes 105
Slide 27: 2022 Outlook
2022 Outlook Rising risk factors, especially in health of financial markets, interest rates levels, inflation, and geopolitical situation Business activity in line with previous years, provided the macro environment and financial markets do not worsen 1.0 Continued firm control of operating expenses
Slide 28: Appendices
Appendices « BCV
Slide 29: Income statement
Income statement CHF millions (rounded) FY 2021 FY 2020 Abs % Interest and discount income 480.5 511.2 -30.7 -6 Interest and dividend income from financial investments 18.0 22.6 -4.6 -20 Interest expense -26.0 -59.4 -33.4 -56 Net interest income before loan impairment charges/reversals 472.6 474.4 -
Slide 30: Balance sheet
Balance sheet CHF millions (rounded) 31 Dec. 2021 31 Dec. 2020 Abs % Cash and cash equivalents 12,600 11,550 +1,050 +9 Due from banks 952 1,347 -395 -29 Reverse repurchase agreements 158 236 -78 -33 Loans and advances to customers 6,209 5,812 +397 +7 Mortgage loans 29,373 28,037 +1,336 +5 Trading po
Slide 31: Key performance indicators
Key performance indicators 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2017 2018 2019 2020 2021 Impaired loans/ 0.7% 0.6% 0,5% 0.5% 0.4% 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 32: BCV share
BCV share Per share (CHF)1 Stock price (CHF) 4.9 5.0 105 4.7 Operating 4.5 4.2 4.3 4.4 100 4.1 profit 3.7 3.8 EPS 95 90 85 80 75 70.80 70 0 2017 2018 2019 2020 2021 1 Jan. 2021 30 Jun. 2021 31 Dec. 2021 Key figures 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2017 2018 2019 2020 2021 Number of issued sha
Slide 33: Calendar
Calendar 17 February 2022 5 April 2022 5 May 2022 9 May 2022 Full-year 2021 Publication of the Annual Ex-dividend date1 results 2021 Annual Report Shareholders’ Meeting in Lausanne 1.0 10 May 2022 11 May 2022 18 August 2022 Dividend record Dividend payment1 Half-year 2022 date1 results Note (1) Tota
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