Banque Cantonale Vaudoise (BCVN) H1 2025 earnings summary

Executive summary

• Revenues remained stable at CHF 579m, with net profit down 3% year-over-year to CHF 215m–CHF 250m after two record years, reflecting strong diversification and cost control.

• Business volumes and assets under management increased across all client segments, with AuM rising to CHF 126.5bn, up 2% from year-end 2024.

• Mortgage, commercial credit, deposits, and assets under management all increased; minor outflow in net new money due to a single large corporate withdrawal.

• Dividend payout increased to CHF 4.40 per share, totaling CHF 379m, with all AGM agenda items approved.

• Growth observed across all business lines, with stable revenues despite a challenging interest rate environment.

Financial highlights

• Net profit of CHF 215m–CHF 250m, down 3% year-over-year; revenues stable at CHF 579m.

• Net interest income declined by 8% (CHF 22m), while commission and trading income rose due to favorable market conditions.

• Operating profit declined 3% to CHF 251m; operating expenses remained stable at CHF 282m.

• Total assets grew 1% to CHF 61.2bn; AuM up 2% to CHF 126.5bn.

• Cost/income ratio increased to 56.2%.

Outlook and guidance

• Swiss and Vaud economies remain resilient, with low unemployment and controlled inflation, but growth forecasts have been revised downward due to global tariffs and geopolitical tensions.

• U.S. tariffs and a weaker dollar may marginally impact certain export sectors, but no significant risk to overall results is expected in H2 2025.

• The SNB cut its policy rate to 0% in June 2025 to support the economy.

• Real estate market remains dynamic, supported by demographic growth and declining interest rates.

• Net interest margin expected to face continued pressure; commission business anticipated to partially offset this.