Banque Cantonale Vaudoise (BCVN) H2 2024 earnings summary

Executive summary

• Achieved CHF 441m net profit in 2024, down 6% from 2023, marking the second-best result in history, with stable revenues at CHF 1.16bn and operating profit of CHF 515m, despite a challenging interest-rate environment.

• Mortgage business grew 8% year-over-year, with assets under management up 6% to CHF 124.2bn and net new money of CHF 3.3bn, benefiting from a dynamic market and market share gains.

• Board proposes dividend increase to CHF 4.40 per share, totaling CHF 379m payout, reflecting confidence in future earnings and continuing a long-standing policy of stable or rising payouts.

• Financial and ESG ratings reaffirmed among the best globally, with upgrades in ESG categories and compliance with new Swiss climate disclosure rules.

• Significant leadership changes, including two women appointed to leadership roles and Board member transitions.

Financial highlights

• Net profit CHF 441m (-6% year-over-year); operating profit CHF 515m (-5%); revenues stable at CHF 1.16bn.

• Net interest income fell 7% to CHF 554m; commission and trading income offset lower net interest income.

• Assets under management CHF 124.2bn (+6%); net new money CHF 3.2–3.3bn.

• Operating expenses increased 3% to CHF 557m, mainly from higher personnel costs and IT insourcing.

• Cost/income ratio at 55.2%; ROE at 11.5%.

Outlook and guidance

• Swiss and Vaud economies expected to remain resilient, with GDP growth of 0.8–1.2% and no recession anticipated.

• Mortgage business growth expected to normalize to around 4% as merger effects fade; commercial margins under pressure from higher refinancing costs and competition.

• Targeting cost/income ratio of 55–57% and ROE of 10–12%; dividend policy extended for five years, aiming for CHF 4.30–4.70 per share barring major changes.

• Strategic focus on digitalization, service quality, and sustainable growth.