Overview Our strategy Figures and ratios

Transcription

1 Who We Are

2 Contents Overview Our strategy Figures and ratios Who We Are 2

3 Strong presence in Vaud 1.0 Who We Are 3

4 Board of Directors Ingrid Deltenre Member of the Board of Directors Paul-André Sanglard Member of the Board of Directors Jacques de Watteville Chairman of the Board of Directors Peter Ochsner Member of the Board of Directors 1.0 Reto Donatsch Member of the Board of Directors Jack G. N. Clemons Member of the Board of Directors Fabienne Freymond Cantone Member of the Board of Directors Who We Are 4

5 Executive Board Chief Executive Officer P. Kiener Corporate Secretary Human Resources Strategy & Organization Corporate Communications Finance & Risks T. Paulsen Credit Management B. Sager Corporate Banking A. Diemant Retail Banking J. F. Sierdo Private Banking G. Haeberli Asset Management & Trading S. Bichsel Business Support C. Meixenberger Risk Management Financial Accounting Controlling ALM & Financial Management Compliance Legal Tax & Wealth Planning Credit Analysis Retail Credit Analysis SMEs & Real Estate Credit Analysis Corporate, TF, Country and Bank Credit Analysis Support Credit Recovery Management SMEs Large Corporates Trade Finance Retail Banking Branch Offices Marketing Services Multichannel Services Private Banking Key Clients Onshore Private Banking International Private Banking Independent Asset Managers Asset Management Investment Policy Trading IT Projects and Development IT Systems Mgmt. Facility Management & General Services Back Office Global Custody Security Who We Are 5

6 History 1845 BCV was founded by the Vaud Cantonal Parliament as a corporation organized under public law Acquisition and merger with Banque Vaudoise de Crédit and Crédit Foncier Vaudois Recapitalization, change of the Board of Directors, change of the 0.5 Executive Board, redefinition of the governance and strategy (focus on domestic businesses) 1.0 Who We Are 6

7 BCV s mission To offer a comprehensive range of banking services to the local community and to contribute to the development of all sectors of the Vaud economy and to the financing of the Canton s public-sector institutions and entities To be guided by the principles of economically, environmentally, and socially sustainable development To create value for our shareholders and clients, to be a benchmark employer, and to be a good corporate citizen Who We Are 7

8 Our businesses Retail Banking Corporate Banking Wealth Management Trading Savings & home mortgages for retail customers located in Vaud Commercial banking for SMEs in Vaud and larger corporations throughout Switzerland Transaction-based trade finance in metals, softs, and petroleum-derived products Private banking mainly for onshore clients in Vaud Institutional asset management mainly in Vaud Customer-driven business mainly in forex Who We Are 8

9 Key numbers Total assets AuM Total income Operating profit Net profit Total capital ratio FY 2017 CHF 45.4bn CHF 86.5bn CHF 967m CHF 387m CHF 320m 17.3% 1 Leverage ratio 6.5% ROE Total staff Branch network Note (1) In accordance with FINMA Circular 2016/1, Disclosure banks 9.4% 1,922 FTEs 60+ branches & 230+ ATMs Who We Are 9

10 Contents Overview Our strategy Figures and ratios Who We Are 10

11 History of strategic plans Turnaround CroisSens BCVPlus New governance and organizational changes Recapitalization Strategic realignment Large-scale NPL workout program Creation of Risk Management Dept. Improved ALM Branch office network modernized New brand and communications platform Regional and client re-segmentation Enhanced management training Focus on crossselling Clearly differentiated business-line strategies Sales-support efficiency and frontline execution Performance-based corporate culture Focus on core values Keep building on our achievements Improve processes Consistently deliver high-quality service Enhance multichannel distribution Focus on cost control REBIRTH GROWTH PERFORMANCE EXCELLENCE Managing through the crisis Very favorable market environment Financial crisis followed by persistently lowinterest-rate environment Flat market trend unlikely to drive business growth Who We Are 11

12 Our strategy since 2008 in one chart Get our business-line growth on a sustainable track to strengthen our regional leadership Growth Transform a good bank into a great one, ready to stand up to the competition and face future challenges in the Swiss banking landscape 1.0 Execution Simplify and improve operational efficiency Skills Strengthen our performancebased culture and provide best-inclass advisory services Who We Are 12

13 The four pillars of our strategy Business strategy with clear priorities Active capital management Corporate culture oriented towards performance and continuous skills improvement Initiatives to achieve operational excellence and simplicity Who We Are 13

14 : Onwards and Upwards ONWARDS Don t change a winning strategy: Fully execute on planned and ongoing projects and see them through to the payoffs + UPWARDS Adjust business-line strategies as regulatory and market environments evolve Further simplify and streamline internal operations Make impeccable service our differentiating factor Who We Are 14

15 : Five guiding principles 1 Improve customer service 2 Expand multi-channel distribution 3 Further streamline operations and processes 4 Optimize and sustain our existing IT assets 5 Adapt our wealth management business to the regulatory environment Who We Are 15

16 Portfolio of business activities Relative size of gross profit contribution Depos. Banking Forex Large corp. Trade finance Struc. Products Real estate prof. SME Client. Equities & Fixed income PB Onshore PB Offshore Retail/ Direct Bank Inst. AM Indep. Asset Mgrs ebrokerage Our business portfolio is made up of: Three core businesses that focus on Vaud, have a long history in the Canton, and are an integral part of the Bank's corporate mission: Retail banking SME PB Onshore Other universal banking activities closely linked to other businesses (synergies through skills, products, and operational or client-driven processes) Activities with fewer synergies with the three core businesses but with a clear role in our portfolio Note: FX swap, fixed income, and equity derivatives (marginal activities internal support for other activities like structured products) Who We Are 16

17 : Main strategic targets Retail banking SMEs Onshore private banking Piguet Galland & Cie SA Asset management Structured products Trade finance Large corporates Grow at least at market pace in Vaud Achieve above-market growth in Vaud Gain market share in Frenchspeaking Switzerland Pursue new niche growth drivers in Switzerland Continue to diversify activities Increase business activity as market recovers Continue to focus on profitability within our overall risk profile Who We Are 17

18 Close alignment between our business and financial strategies BCV s missions Business strategy Strong consistency Financial strategy Universal bank with solid local roots Focused on three core businesses Operating in a low-growth environment (banking sector in Switzerland & Vaud) Aiming for long-term, sustainable growth to ensure earnings stability Stable earnings with a moderate risk profile Limited need for additional shareholders equity (low business growth) Long-lasting distribution policy with a high yield Surplus capital may potentially be distributed Who We Are 18

19 BCV target ratios Target C/I ratio 57%-59% ROE 12%-13% Target ROE once we achieve our target equity ratio Current ROE under pressure due to high level of equity Capital ratio 13.7% 1 Note (1) CET1 (Common Equity Tier 1) target ratio of 13.7% at the Group level as calculated under FINMA Circular 2016/1 Disclosure banks or 13% as previously calculated by subtracting the countercyclical buffer from regulatory capital Who We Are 19

20 Surplus capital 0.7% 1.0% 13.7% 17.1% percentage points above FINMA minimum target Look-through CET1 ratio of 16.8%, including the fully loaded specific IRB multiplier 12.0% FINMA requirement for banks in supervisory category 3 SNB countercyclical buffer FINMA temporary add-on for interest rate risk FINMA min. target BCV CET1 ratio 1 31 Dec Note (1) In accordance with FINMA Circular 2016/1, Disclosure banks Who We Are 20

21 Distribution policy extended for another five years Horizon 1 From 2008 to 2012 Horizon 2 From 2013 to 2017 Horizon 3 From 2018 to 2022 Ordinary dividend + Special distribution CHF 20 to CHF 25 per share CHF 10 per share Ordinary dividend + Special distribution CHF 22 to CHF 27 per share CHF 10 per share Ordinary dividend CHF 34 to CHF 38 per share In light of the planned reduction in Vaud Canton s corporate tax rates Barring significant changes in the economic or regulatory environment or the Bank's situation Who We Are 21

22 Delivering on promises since 2008 Horizon 1 Horizon 2 Reporting period Payment year Par-value reduction (CHF per share) Special distribution out of paid-in reserves (CHF per share) Ordinary dividend (CHF per share) Total amount paid (CHF millions) As % of net profit % 89% 88% 91% 88% 98% 93% 84% 92% 89% Who We Are 22

23 Enhancing our value proposition for shareholders Aligning our interests with shareholders Aiming for long-term sustainable growth Ensuring high dividend payouts for the long term BCVN: a defensive stock offering steady growth and an attractive risk/return profile Improving our risk profile Reducing our earnings variability 23

24 Contents Overview Our strategy Figures and ratios Who We Are 24

25 Key figures (in CHF millions) Balance sheet 1 31 Dec Dec Dec Dec Dec Total assets 40,177 41,819 43,418 44,085 45,415 Advances to customers 28,729 29,720 29,457 29,849 30,233 Customer deposits 27,557 28,532 28,877 29,245 30,512 Shareholders' equity 3,322 3,341 3,397 3,420 3,457 Assets under management 83,850 86,382 87,972 85,382 86,490 FY FY FY FY FY Income statement Total income 999 1,010 1, Operating expenses Depr. & amort. of fixed assets and impairment on equity investments Other provisions and losses Operating profit Net profit Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. Headcount Full-time equivalents 1,987 1,946 1,947 1,943 1,922 Note (1) As of the 2015 financial year, the financial statements are presented in accordance with the new Swiss accounting rules for banks; the figures for the previous years have been adjusted to facilitate like-for-like comparison Who We Are 25

26 Key ratios Liquidity and capital ratios 1 31 Dec Dec Dec Dec Dec Liquidity Coverage Ratio (LCR) N/A 105% 111% 113% 121% Leverage ratio N/A 6.8% 6.7% 6.6% 6.5% Tier 1 capital ratio % 17.7% 18.3% 17.5% 17.1% Total capital ratio % 17.9% 18.4% 17.6% 17.3% Income ratios Operating profit/avg. shareholders' equity 10.8% 12% 12% 11% 11% Cost/income ratio % 59.6% 57.2% 59.4% 58.3% Operating profit per employee (CHF thousands) ROE 8.5% 9.0% 10.1% 9.1% 9.4% Note (1) More detailed information on Group and parent company liquidity and capital ratios can be found in the Basel III Pillar 3 report, which is available at and on the BCV Investor Relations ipad app. (2) In accordance with FINMA Circular 2016/1, Disclosure - banks (3) Excluding goodwill amortization and write-downs Who We Are 26

27 Shareholder structure 31 Dec Dec Dec Dec Dec Number of shares outstanding (thousands) 8,606 8,606 8,606 8,606 8,606 Ordinary dividend per share (CHF) Ordinary dividend yield 1 (%) Total payout 2 (CHF) Total payout yield 1 (%) Share ownership structure Share ownership by geographical zone Unregistered shares 15% Registered shares owned by BCV employees 1% Registered shares owned by institutional shareholders 8% Registered shares owned by private shareholders 9% Unregistered shares 15% Registered shares owned by foreign shareholders 1% Registered shares owned by non-vaud Swiss shareholders 10% Registered shares owned by the Canton of Vaud 67% Registered shares owned by Vaud shareholders 74% Note (1) Relative to the period-end share price (2) Total amount distributed to shareholders in the form of an ordinary dividend together with a distribution out of paid-in reserves Who We Are 27

28 BCV total shareholder return Total return to shareholders 1, from 31 December 2008 to 31 December 2017 Total return over the period Total return % Total return % Total return % Total return % Total return % Total return % Total return % Total return % Total return % 400 BCV +299% SPI Index +135% Swiss Banking Sector +35% 50 Dec. 09 Dec. 10 Dec. 11 Dec. 12 Dec. 13 Dec. 14 Dec. 15 Dec. 16 Dec. 17 Note (1) Share price performance + dividend payment + capital distribution over the period Source: Thomson Reuters Datastream Who We Are 28

29 Rating Standard & Poor s Long term AA AApositive AA AA negative AA AA AA AA AA Short term A-1+ A-1+ A-1+ A-1+ A-1+ A-1+ A-1+ A-1+ A-1+ A-1+ AA Moody s Long term A1 A1 A1 A1 A1 Short term Prime-1 Prime-1 Prime-1 Prime-1 Prime-1 Prime-1 Prime-1 Prime-1 Prime-1 Prime-1 A1 Aa2 Aa2 Aa2 Aa2 Who We Are 29

30 BCV Investor Relations ipad App The BCV Investor Relations app keeps you in touch with the latest developments at BCV Group It brings together everything of interest to shareholders, investors and analysts, including: An overview of BCV Our key figures Annual and interim reports Press releases Pillar 3 reports BCV stock price and chart Corporate social responsibility reports Presentations for investors The app also displays upcoming BCV events that you can add to your calendar at the push of a button. Shareholders can read the agenda for the next AGM, as well as download all the relevant documents. The app displays BCV s credit rating, as well as credit opinions on the Bank. You can also contact BCV s Head of Investor Relations, whose and phone number you ll find in the app. Note (1) ipad is a registered trademark of Apple Inc. Who We Are 30

31 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 that may result directly or indirectly from this information. The information and opinions contained in this document are representative of the situation on the date this document was prepared and may change at any time, particularly as a result of changes in the general market trend, interest rates and exchange rates, and legislative and/or regulatory changes. We have no obligation to update or modify this document. No offer or recommendation. This document was prepared for information purposes only and does not constitute a request for an offer, an offer to buy or sell, or a personalized investment recommendation. Before you conduct any transaction, we recommend that you contact your advisors to carry out a specific examination of your risk profile and that you seek information about the risks involved. One such source of information is the SwissBanking brochure "Special Risks in Securities Trading" (available at BCV offices and on the BCV website: In particular, we draw your attention to the fact that prior performance must not be taken as a guarantee of current or future performance. Interests in certain securities and relations with third parties. BCV, its affiliate companies and/or their directors, managers and employees may hold or have held interests or positions in certain securities, which they may buy or sell at any time, or have acted or traded as a market maker. They may have or have had business relationships with the issuers of certain securities, or provide or have provided them with corporate finance services, capital market services or any other financial services. Distribution restrictions. Certain transactions and/or the distribution of this document may be prohibited or subject to restrictions for persons in jurisdictions other than Switzerland (particularly Germany, the UK, and the USA) and for US persons. The distribution of this document is only authorized to the extent allowed by the applicable law. 1.0 Trademarks and copyright. The BCV logo and trademark are protected by law. This document is subject to copyright and may not be reproduced unless the reproduction mentions its author, copyright and all the legal information it contains. Prior written authorization from BCV is required to use this document for public or commercial purposes. Who We Are 31