Banque Cantonale de Genève Roadshow Investora 2017

Transcription

1 Communication et relations investisseurs I BCGE Banque Cantonale de Genève Roadshow Zurich I 20 September 2017

2 Summary Our identity Our corporate environment Our services Our results Shareholders and equity Risk management Investment highlights Page 2

3 Our identity Blaise Goetschin I CEO BCGE: a leading bank in Switzerland Page 3

4 Largest financier of Geneva s economy Reliable deposit bank Solid capitalisation Decision-making centre in Geneva Since 1816 Listed on the SIX Swiss Exchange Page 4

5 Key figures of the Banque Cantonale de Genève CHF 15.6bn Main source of financing for Geneva s economy CHF 1.4bn Shareholders equity 232,325 clients 15.1% Total Capital ratio CHF 24.6bn Assets under management & custody 12.0% CET 1 CHF 21.4bn Total balance sheet Page 5

6 Partner in a powerful banking network 24 cantonal banks Switzerland s N o 1 banking force 28% of the Swiss banking market N o 1 for SME financing 31% of SME financing 18,500 staff in the Cantonal Bank Network Page 6

7 Swiss and international presence of BCGE Group Geneva 1816 Lausanne 1997 Zurich 1997 Paris 2010 Lyon 1993 Dubai 2010 Hong Kong 2011 Annecy 1993 Digital Corporate Finance (7,800 users) (109,000 users) Geneva 2008 Lausanne 1994 Geneva 2015 Page 7

8 Our corporate environment Blaise Goetschin I CEO Page 8

9 Source: Thomson Reuters Datastream Geneva Lake Geneva region Growth Exports comparison Exports comparison > Growth from 2000 to Q1/ Geneva 30.9 % compared with 33.6% for Switzerland > Specialised in high added-value activities, French-speaking Switzerland was ranked in 3 rd position as regards growth between 2000 and 2015 > Today, 25% of swiss national product is made of Lake Geneva/french speaking switzerland Switzerland Geneva Zurich Euro Zone Page 9

10 In market share Geneva Lake Geneva region Commodity trading 35% of oil and oil products (75% of Russian exports) 35% of cereals and oils Number 1 in commodity trading 33% of sugar 60% of metals (10% of steel products) 50% of coffee Page 10

11 Geneva Lake Geneva region Industry/research Ranked no. 1 production of flavourings (70% market share) Top 20 European universities (IMD, EPFL, UNIGE, UNIL) Geneva: 15 th world financial centre (Geneva) Ranked no. 1 world exports of watches (more than $22bn) 20 institutions of world renown Research, universities and university hospitals Page 11

12 Our services Blaise Goetschin I CEO BCGE: a multi-service bank, a business ally Page 12

13 A professional offering for a wide range of client segments INDIVIDUALS CORPORATES INSTITUTIONALS CENTRES OF EXPERTISE Page 13

14 A comprehensive range of services INDIVIDUALS The universal bank of Geneva Retail banking services clients Private banking CHF 13.4bn of assets under management and custody Savings and pension schemes CHF 5.0bn of savings Mortgage loans CHF 4.1bn BCGE: a simple and accessible bank Page 14

15 Quality support for corporates and their leaders CORPORATES From micro-enterprises Construction & property CHF 3.5bn Public finance CHF 3.0bn Corporate banking Nearly 1 company out of 2 in Geneva is a client BCGE: a multi-service bank, a business ally Page 15

16 Quality support for businesses and their leaders CORPORATES to multinationals Global commodity finance CHF 2.0bn Banking and insurance 400 client banks of which 100 internationally Corporate desk for Multinationals BCGE: a multi-service bank, a business ally Page 16

17 A specialist player INSTITUTIONALS From pension funds to family offices Asset management in Switzerland CHF 5.3bn Institutional clients CHF 11.2bn 57 investment funds totalling 2.2bn BCGE: a leading bank in Switzerland Page 17

18 Ongoing: innovation Traditional business model Evolutionary business model 2015 Dimension SA - new participation - mergers & acquisitions Senior debt: USD 100mio 2016 Synchrony Funds as a premium brand XPATBKING.ch: new offer to Swiss citizens living abroad ForXchange: forex platform for corporate clients Multinationals desk development of a new corporate market 2017 GIPS certification Cantonal guarantee on savings accounts was phased out on BCGE share: 3 differents sort of shares converted in one Page 18

19 Our results Blaise Goetschin I CEO BCGE: a multi-service bank, a business ally Page 19

20 Strong increase in profitability I Operating profit at a new record level of CHF 65.6m (+23%) I Half-year net profit rises to CHF 47.0m (+10%) in CHFm > All revenue sources play their part in this increase > Expenses are stable > Cost of risk is low > Substantial improvement in equity ratio I Operating income I Half-year net profit Page 20

21 Strong income growth thanks to the diversification of business lines I Net interest income rises by 7.5% I Commissions up 11.6% > Growth and zero cost of risk have a positive impact on interest income > Commissions benefit from the increased volumes in asset management and trade finance > Income from active trading positions up 9.8% thanks to operations on the capital market > Income in EUR and USD amounts to 26.5% ( : 22%) of total income I Net profit from interest operations I Commissions I Trading operations I Other income Page 21

22 Growth of results bolstered by international activities I The bank confirms its competitiveness on its key markets I Improvement in the cost/income ratio thanks to the growth in income I Profitability increases despite ongoing difficult rates environment Competitiveness Productivity Profitability I Mortgage loans I AUM (assets under management and administration) I Cost/income ratio I Operating expenses I Operating income return on equity I ROE (return on equity) Page 22

23 20,016 21,393 21,401 Major player in financing Geneva s economy I The bank has granted more than CHF 1.6bn of new business and personal loans since (CHF 13.3bn) at CHF 14.9bn ( ) > Targeted increase in mortgages (+2.5%) > The mortgage share of the total balance sheet is moderate (50%) compared to the benchmark; reflection of the dilution of exposure to the real estate risk 3,745 4,607 4,266 > The bank provides its services to 18,702 business clients (+146 since ) 9,966 10,366 10,626 I Balance sheet total I Mortgage loans I Amounts due from clients Page 23

24 20,016 21,393 21,401 Significant growth in client deposits (+4.4%) I The bank protects its clients against the impact of negative interest rates > The structure of liabilities is well-diversified 1,319 2,959 1,386 3,081 1,418 3,300 > High rate of mortgages covered by client deposits (loan to deposit): 130% > Success of the programme with more than 29,150 clients benefiting from it 12,732 13,233 13,809 I Balance sheet total I Client deposits (short-term and savings) I Long-term loans I Equity Page 24

25 Rise in asset management (+ CHF 1.5bn) I Amounts held by institutional clients increase by 9.8% to CHF 11.2bn I Managed and administered funds for private clients total CHF 13.4bn > The private banking business has benefited from substantial inflows from the existing client base, especially in mandates > The range of products has been enhanced (private equity, share trackers, advisory services for large portfolios) > investment funds have risen to CHF 2.2bn (+16%) I Private clients (advice, administration and savings deposits) I Private clients (mandates) I Institutional clients Page 25

26 Our 2017 outlook I The Bank is speeding up its business expansion despite the difficult financial context and intense competition. It is relying on the diverse nature of its skills and the alignment of its business model with the specific features of Geneva's economy > The growth of high added-value business and the loyalty of its customer base reaffirm its positive strategic positioning > The Bank's financial soundness makes it a very safe and stable repository for deposits > The Bank expects ongoing low rates and strong market volatility, factors which will affect its interest margin and commission income > Lending growth will remain subdued due to regulations governing capital requirements and the counter-cyclical buffer > The Bank is stepping up the development of business areas that are less capitalintensive (private banking, asset management, investment funds, mergers and acquisitions, and financial engineering consultancy). I For the full year 2017, the Bank expects operating profitability to be higher than last year Page 26

27 Shareholders and equity Blaise Goetschin I CEO BCGE: a leading bank in Switzerland Page 27

28 Shareholding BCGE I Ordinary stocks, CHF 50 nominal : 7,200,000 Distribution of shares 44.3% 20.9% 7.4% 27.4% Geneva municipalities Canton of Geneva Investors City of Geneva Page 28

29 6,154 10,361 13,246 13,811 14, new shareholders I The bank has 14,212 shareholders as of > Private share ownership is very fragmented (82.8% of shareholders own between 1 and 50 shares) > Alignment of interests between the shareholding body and staff (84% of BCGE staff are shareholders, holding 2.6% of the bank s capital) Some shareholders who have deposited their shares in other banks are registered shareholders. They have no time constraint to do so when they waive attending the AGM or voting. Page 29

30 Risk management Blaise Goetschin I CEO BCGE: a leading bank in Switzerland Page 30

31 A good diversification of revenue streams and exposures Mortgage in % Due from clients in % Asset under management and custody in % bn 4.3bn bn I Geneva I Switzerland (excl. Geneva) I France I Geneva I Switzerland (excl. Geneva) I France I Europe (excl. France & Switzerland) I World (excl. Europe) I Geneva I Switzerland (excl. Geneva) I France I Europe (excl. France & Switzerland) I World (excl. Europe) Page 31

32 A good diversification of risk exposures > Risk management based on: > Risk limits defined per business activity > Credit limits: Based on equity requirements Mortgage: loan to value limited < 80% Imputed interest rate of ( 4.73% + (1%*pledge value)) > Banking book: Sensitivity on Interest Rate Risk (assets & liabilities management ) < 8% Currency of Assets and Liability mix is very closely matched, limiting currency risk > Trading limits Defined for daily and monthly exposures Facilitating client transaction, very poor activity in proprietary trading Page 32

33 ,295 1,362 1,507 1,406 1,536 1,757 Equity constantly being strengthened > Allocation of CHF 5 million to the reserve for general banking risks* (at 165 million*) > BCGE belongs to the group of banks that are soundly capitalised with strong liquidity position > Total capital ratio target: ~ 13.5% > Liquidity ratio (LCR) ** at 116.5% and NSFR ** at 116.1% > Leverage ratio* at 7.11% > CET 1* at 11.96% > Standardised approach to capital requirements (SA-CH) > Impact of 2 % CCyB* = 0.54% I Total Capital (mios CHF) I CET1 I Total Capital requirement Total Capital ratio * **On annual basis Page 33

34 Investment highlights Blaise Goetschin I CEO The BCGE: a leading bank in Switzerland Page 34

35 Mid term objectives Strategic goals Leading financial partner for the regional economy > Tactical targets Selective mortgage growth Corporate banking and Commodity Trade Finance Expansion of private banking and asset management > Targeted expansion of Swiss and international Private banking Develop Synchrony funds domestic and abroad Business development & innovations > Global wealth planning for Swiss customers Develop financial engineering & M&A transactions E-brokerage BCGE 1816 TM Productivity improvement > Cost/income close to 60 % Operating result: moderate growth Page 35

36 BCGE highlights > Solid capitalization and liquidity base > A resilient source of earnings > Diversified revenue mix (Interest income 60 %; Commissions income 29%; Others income 11%) > Steady growth of the balance sheet of around 3-4% a year > Strong regional franchise (Geneva) > Committed shareholder base anchored in BCGE s home region with strong position of public sector ownership > Large base of small investors (more than 14,000) Page 36

37 Questions & Answers BCGE: a leading bank in Switzerland Page 37

38 Executive Board Blaise Goetschin CEO Eric Bourgeaux Finance and Risk Management Claude Bagnoud Geneva Private Clients and Family Businesses Yves Spörri Corporate and Institutional Clients Jean-Marc Joris Organisation, Technology and Operations Pierre-Olivier Fragnière International clients Page 38

39 This document cannot be considered as an offer or a solicitation to buy or sell the securities mentioned. Nor does it constitute a "financial analysis" within the meaning of the "Guidelines to guarantee the independence of financial analysis" issued by the Swiss Bankers Association. Any investment decision taken by the reader remains his sole responsibility and must be based exclusively on his own assessment of his financial situation, his investment objectives and his own interpretation of the information contained in this document. Especially, the reader should seek information regarding any possible tax and legal implications of the operations he conducts. This document is not aimed at natural or legal persons who, because of their nationality, their place of residence or for any other reason, come under jurisdictions which might prohibit or limit its use. This document must not be used by those persons. Banque Cantonale de Genève Quai de l Ile Geneva 2 Tél.: +41 (0)