Banque Cantonale Vaudoise · SIX:BCVN
Banque Cantonale Vaudoise — H1 2022 Earnings Presentation
33 slides from Banque Cantonale Vaudoise's earnings presentation, Aug 18, 2022
Slide 1: 2022 Half-Year Results
2022 Half-Year Results Analysts’ presentation 18 August 2022
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 2022 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Half-Year 2022 Financial Results 3
Slide 4: Key messages
Key messages Ongoing rise in mortgage loans and other lending, customer deposits stable, decrease in assets under management Revenue up 6%, mainly driven by fee and commission income, trading income and lower provisioning needs Operating profit up 12% year on year to CHF 227m and net profit up 14% t
Slide 5: HY 2022 key figures
HY 2022 key figures CHF (rounded), unaudited figures Revenues Operating profit Net profit 524m 227m 197m +6% +12% +14% 1.0 Total assets AuM 59.1bn 107.2bn +6% -5% Half-Year 2022 Financial Results 5
Slide 6: Main business trends
Main business trends CHF millions (rounded), unaudited figures Mortgage loans Sight deposits1,2 AuM +2% -1% -5% 29'373 30'049 15'306 15'141 112'887 107'239 31 Dec. 30 Jun. 31 Dec. 30 Jun. 31 Dec. 30 Jun. 2021 2022 2021 2022 2021 2022 0.5 0.5 0.5 Other loans Other client deposits2 Net new money +4% 0
Slide 7: Other highlights
Other highlights Peter Ochsner, member “Most recommended of the Board of Directors bank” in Vaud Canton for and chair of the Audit and the fourth year in a row, Risk Committee, to step according to the LINK down from the Board on research institute 30 June 2023 after seven years of service ISAE 3402
Slide 8: 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 MSCI’s second-highest rating BCV now in MSCI’s “Leader” ca
Slide 9: Retail Banking
Retail Banking CHF millions (rounded)1 Mortgage loans Customer deposits +2% +3% Continuing rise in mortgage loans focused 9'318 9'512 11'236 11'592 on certain regions in a still dynamic real- estate market in H1 Continuing cash inflows from customers 31 Dec. 30 Jun. 31 Dec. 30 Jun. 2021 2022 202
Slide 10: Corporate Banking
Corporate Banking CHF millions (rounded)1 Loans/off-BS commitments Customer deposits 0% -7% SMEs 18'614 18'654 12'614 11'673 Loans/off-BS commitments up 2% Covid-19 bridge-loan repayments for close to CHF 70m in H1 (ca. 40% of total Covid loanbook paid off) Deposits up 3% Real-estate firms
Slide 11: Wealth Management
Wealth Management CHF millions (rounded)1 AuM Mortgage loans -6% +2% Decrease in AuM 82'992 8'374 77'754 8'226 Negative performance of financial markets NNM from both private banking and institutional clients 31 Dec. 30 Jun. 31 Dec. 30 Jun. Increase in mortgage loans in a still dynamic 2021
Slide 12: Trading
Trading CHF millions (rounded) Revenues Operating profit +2% 0% Forex trading up sharply on high volatility – 30 31 17 17 forex accounted for more than 65% of overall Trading revenues Activity in structured products segment lower compared to record 2021 H1 H1 H1 H1 2021 2022 2021 2022 Revenues
Slide 13: Agenda
Agenda Introduction HY 2022 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Half-Year 2022 Financial Results 13
Slide 14: Income statement
Income statement CHF millions (rounded), unaudited figures H1 2021 H1 2022 Change Total income from ordinary banking operations 493 524 +31 +6% Operating expenses -256 -261 +5 +2% Depreciation & amortization of fixed assets and impairment on -37 -36 -1 -2% equity investments Other provisions and los
Slide 15: Total income from banking operations
Total income from banking operations CHF millions (rounded), unaudited figures Total income from ordinary banking operations 524 +31 +6% Net interest income – Up (see below) 493 Commissions & fees – Up, driven by 235 Net interest income +8 +4% transactions from individual customers 227 Trading
Slide 16: Operating expenses, depreciation and amortization
Operating expenses, depreciation and amortization CHF millions (rounded), unaudited figures 297 +4 +1% Continued firm control of operating 293 expenses Personnel costs stable Other operating expenses up 178 178 Personnel costs -0 -0% Resumption of cultural and sporting events supported by BC
Slide 17: Headcount
Headcount Full-time equivalents at period-end +25 -12 +23 +2 -26 1,922 1,896 1,921 1,909 1,932 1,934 197 192 189 194 195 Subsidiaries 196 1.0 Parent 1'725 1'700 1'729 1'720 1'738 1'739 company 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 30 Jun. 2017 2018 2019 2020 2021 2022 Half-Year 2022 Financial Resu
Slide 18: Assets
Assets CHF billions (rounded), unaudited figures 59.1 +3.1 +6% Cash and equivalents – SNB sight 56.0 deposits stable at a high level 12.9 Cash and equivalents +0.3 +3% Loans and advances to customers – 12.6 Slightly up Due from banks and reverse 2.1 repo agreements +1.0 +87% 1.1 Loans and advanc
Slide 19: Liabilities and equity
Liabilities and equity CHF billions (rounded), unaudited figures 59.1 +3.1 +6% Due to banks – Up, reflecting treasury 56.0 management 7.7 Due to banks +2.9 +60% 4.8 Customer deposits – Very slightly down: continued inflows from individuals and SMEs, outflows from large corporates and institution
Slide 20: Assets under management
Assets under management CHF billions (rounded) Assets under management -5% AuM down 5% to CHF 107.2bn 112.9 +1.5 107.2 Piguet 6.6 -7.1 Market performance of -CHF 7.1bn (-6%) Galland 6.2 BCV 106.3 101.1 Net new money of CHF 1.5bn (+1%) 31 Dec. Net new Performance 30 Jun. 2021 money 2022 Net new
Slide 21: 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 17.0 %, vs. requirement of 13.0% 17.7% 17.1% 17.2% 18 17.1% 17.1% 17.0% Reactivation of the countercyclical capital 16
Slide 22: Liquidity ratio (LCR)
Liquidity ratio (LCR) CHF millions (rounded) HQLAs1 LCR Minimum requirement LCR decreased by around 13 points vs. H2 Net cash outflows1 2021 due mainly to increasing cash outflows 156.7% 145.0% Composition of the Bank’s HQLAs 143.3% 136.1% 78%: cash deposited with the SNB 129.5% 129.5% 22%:
Slide 23: 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% 121.6% NSFR dropped by almost 4 points vs. 31 Dec. 2021, with higher requ
Slide 24: Agenda
Agenda Introduction HY 2022 financial results Outlook Pascal Kiener, CEO Thomas W. Paulsen, CFO Pascal Kiener, CEO Half-Year 2022 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 3.6% and Estimate at 3.9%, respectively July 2022 5.0 4.4 3.9 4.0 In 2022: inflation, rising interest rates and the 3.0 2.8 geopol
Slide 26: Real estate in Vaud
Real estate in Vaud Transaction prices in Vaud (Basis 100 in Jun. 2012) Apartments Single homes 140 Continuing increase in Vaud real-estate transaction prices since 2017 130 +5% +3% Still dynamic real-estate market in H1 120 Up 3% YTD on apartments 110 Up 5% YTD on single-family homes 100
Slide 27: 2022 Outlook
2022 Outlook H2 revenues expected to be lower than in H1 due to bearish financial markets and rising interest rates 1.0 FY 2022 net profit expected to be in line with previous years, but lower than the near-record net profit posted in 2021 Half-Year 2022 Financial Results 27
Slide 28: Appendices
Appendices & BCV
Slide 29: Income statement
Income statement CHF millions (rounded), unaudited figures H1 2022 H1 2021 Abs % Interest and discount income 240.1 241.9 -1.8 -1 Interest and dividend income from financial investments 8.7 9.2 -0.5 -6 Interest expense -12.9 -14.6 -1.7 -11 Net interest income before loan impairment charges/reversals
Slide 30: Balance sheet
Balance sheet CHF millions (rounded), unaudited figures 30 Jun. 2022 31 Dec. 2021 Abs % Cash and cash equivalents 12,923 12,600 +323 +3 Due from banks 1,906 952 +954 +100 Reverse repurchase agreements 171 158 +13 +8 Loans and advances to customers 6,488 6,209 +278 +4 Mortgage loans 30,049 29,373 +67
Slide 31: Key performance indicators
Key performance indicators 31 Dec. 31 Dec. 31 Dec. 31 Dec. 30 Jun. 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% 104% loans to customers and balance sheet structure Liquidity Coverage Ratio (LCR) 113% 129% 136% 1
Slide 32: BCV share
BCV share Per share (CHF)1 Stock price (CHF) 2.6 2.6 90 2.4 Operating BCV SPI Index 2.3 2.4 2.3 2.1 profit 85 2.0 2.0 1.8 EPS 80 74.90 75 70 65 60 0 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 1 Jan. 2022 31 Mar. 2022 30 Jun. 2022 Key figures 31 Dec. 31 Dec. 31 Dec. 31 Dec. 30 Jun. 2018 2019 2020 2021 2
Slide 33: Calendar
Calendar 17 February 2022 5 May 2022 18 August 2022 9 February 2023 Full-year 2021 Annual Half-year 2022 Full-year 2022 results Shareholders’ results results Meeting in Lausanne 1.0 4 April 2023 4 May 2023 17 August 2023 Publication of the Annual Half-year 2023 2022 Annual Report Shareholders’ resul
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