BCV at a glance Overview of BCV Key figures Our legal status Change as % Ratios Our core businesses Highlights in 2008

Transcription

1 BCV AT A GLANCE 2008

2 Overview of BCV Our legal status Banque Cantonale Vaudoise (BCV) was founded on 19 December 1845 by the Vaud Cantonal Parliament (Grand Conseil vaudois) as a société anonyme de droit public (i.e., a corporation organized under public law). The Canton of Vaud is BCV s majority shareholder, with 66.95% of the share capital. BCV is listed in the Vaud Commercial Register and is subject to all applicable legislation. BCV s legal status is defined in the Cantonal Act Governing the Organization of Banque Cantonale Vaudoise (LBCV) of 20 June 1995, as amended on 25 June 2002 and 30 January BCV s commitments are not underwritten by the Canton, although a limited cantonal guarantee applies to deposits with Caisse d Epargne Cantonale Vaudoise, a savings institution managed by the Bank. Our core businesses With revenues of CHF 928m in 2008 and total assets of CHF 35bn, we rank among Switzerland s top five banks by assets. BCV is the country s second-largest cantonal bank, employing 1,914 people (on a full-time equivalent basis). Our four core business areas are: retail banking, with a network of 68 staffed outlets and 173 ATMs throughout the Canton of Vaud; wealth management for both private and institutional clients; corporate banking; and trading. We offer a comprehensive range of financial services to all client segments. BCV Group comprises four subsidiaries: three fund management/administration firms and a boutique private bank. In 2008, we sold our stake in Spanish private-banking subsidiary Asesores y Gestores Financieros SA (A&G SA). Our missions Pursuant to Article 4 of the LBCV, as amended on 1 April 2007, BCV s corporate mandate is 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. Also, as part of our community focus, we provide mortgage financing in Vaud. The amended law also stipulates that BCV is to be guided by the principles of economically, environmentally and socially sustainable development. More generally, our missions are to create value for our shareholders and clients, to be a benchmark employer, and to be a good corporate citizen. Our strategy In autumn 2008, we modified our strategy in order to focus our efforts on our front lines and generate organic growth in our core markets. Management decided that the best way to ensure profitable growth is the business model of a universal bank with solid local roots. We therefore intend to strengthen our position as a full-service bank in the Vaud region and be recognized as a leading financial institution in Switzerland, particularly for private and institutional asset management. We are targeting: renewed impetus in retail banking, particularly mortgage lending, by improving sell-side execution and overall sales-support efficiency while tapping into the potential inherent in our large client base; growth in private wealth management, primarily in Vaud, and institutional asset management both within Vaud Canton and elsewhere in Switzerland; a greater role for SME-related activities; a significant reduction in proprietary risk-taking in trading activities, which will now center on customerdriven business volumes, following our withdrawal from proprietary equity-derivatives trading; enhanced volumes and profitability in the Trade Finance and Large Corporates business lines, in accordance with the Bank s risk profile. Management is convinced that quality of execution is a key factor in setting ourselves apart from the competition and driving our success going forward. With this in mind, we will launch a series of internal initiatives to simplify processes, develop our employees skill sets, improve customer service and revitalize our sales approach. The Bank s new strategy is expected to generate sustainable growth and greater stability in profits going forward. In the coming years, the Bank aims to pay a stable ordinary dividend, which may rise gradually within a range of CHF 20 to CHF 25 per share, depending on business growth. The Bank intends to maintain this dividend distribution level for the next five to six years. Through active capital management, BCV will optimize equity by making an additional annual distribution of CHF 10 per share. This should lead to a FINMA capital adequacy ratio of 145%. The Group aims to expand revenues by 4-5% and gross profit by 5-8% per year. The long-term targets are 13-14% for ROE, 57-59% for cost/income and 12% for the Tier 1 capital ratio. The ongoing financial crisis is likely to have a temporary effect on these indicators and the Bank s financials in general, particularly in These strategic objectives should thus be viewed from a multiyear perspective. Our vision for BCV is informed by two core values: close ties to our customers and professionalism in our staff. These values guide us in the pursuit of our ultimate goal of creating value for clients, shareholders and employees.

3 BCV at a glance Key figures (in CHF millions) Change as % Total assets % Total income % Gross profit % Net profit % Assets under management % Ratios Cost / income 1 63% 59% ROE 11% 14% BIS capital adequacy Tier 1 capital 16.4% 16.3% Total capital 16.2% 16.3% 1) Excluding goodwill amortization and write-downs. Highlights in 2008 BCV performed very well despite the unprecedented global financial crisis: Net profit was CHF 358m, our fourth-best performance ever. Shareholders equity remained stable at CHF 3.2bn (Tier 1: 16.4%). We were not affected by recent events such as the subprime crisis or the Lehman Brothers bankruptcy. There were strong fund inflows from local clients. Standard & Poor s raised our long-term credit rating from A+ (stable) to AA- (stable). BCV is the first Swiss cantonal bank to have gained approval from the SFBC to use the Basel 2 Foundation Internal Ratings-Based approach. We conducted an in-depth strategic review: We defined clear growth priorities in our various business lines and modified our internal organization accordingly. We launched a series of strategic initiatives aimed at improving operational excellence. We enhanced our customer orientation with four front-line divisions focused on business development. We confirmed our financial targets and equity optimization strategy, and clearly defined our dividend policy.

4 Investor information BCV share price and SPI In CHF (price adjusted for par-value reductions) Points /12/02 30/06/03 31/12/03 30/06/04 31/12/04 30/06/05 31/12/05 30/06/06 31/12/06 30/06/07 31/12/07 30/06/08 31/12/08 BCV (left-hand scale) SPI (right-hand scale) Listed on: SIX Ticker symbols: Par value: CHF 30 Bloomberg : BCVN Swiss security number: Telekurs : BCVN ISIN code: CH Reuters : BCVN.S Number of shares outstanding (thousands) Period-end share price (in CHF) Share price high/low (unadjusted, in CHF) high low Dividend per share (in CHF) Dividend yield 1 (%) S&P long-term credit rating A, stable A, stable A+, stable AA, stable S&P short-term credit rating A 2 A 1 A 1 A 1+ Moody's long-term credit rating A1/stable A1/stable Moody's short-term credit rating Prime 1 Prime 1 1) Relative to the period-end share price. 2) Dividend proposed at the Shareholders Meeting of 30 April 2009 Share ownership structure Share ownership by geographical zone Unregistered shares 17% Registered shares owned by BCV employees 1% Registered shares owned by institutional shareholders 9% Registered shares owned by private shareholders 6% Registered shares owned by the Canton of Vaud 67% Unregistered shares 17% Registered shares owned by foreign shareholders 2% Registered shares owned by non-vaud Swiss shareholders 7% Registered shares owned by Vaud shareholders 74%

5 Key figures 5-year overview (in CHF millions) Balance sheet at 31 December Total assets Advances to customers Customer deposits and bonds Shareholders equity Assets under management Key income-statement data Total income Operating expenses Gross profit Depreciation and write-offs Value adjustments, provisions and losses Net profit Headcount Full-time equivalents Ratios Shareholders equity / total assets 9.2% 10.0% 10.3% 9.1% 9.0% SFBC capital adequacy 185% 196% 199% 179% 180% BIS Tier 1 capital 16.5% 17.8% 18.3% 16.3% 16.4% BIS total capital 17.4% 18.5% 18.5% 16.3% 16.2% BIS risk-weighted assets at 31 December (in CHF millions) Gross profit / average shareholders equity 13.7% 15.0% 15.9% 15.5% 13.1% Cost / income ratio % 61.8% 59.4% 59.0% 62.6% Gross profit per employee (in CHF thousands) ROE 12.4% 14.9% 16.0% 14.3% 11.2% Credit ratings Standard & Poor s Long term A-/stable A-/stable A/stable A+/stable AA-/stable Short term A-2 A-2 A-1 A-1 A-1+ Moody s Long term A1/stable A1/stable Short term Prime-1 Prime-1 1) Following changes to accounting principles applied in preparing the 2007 financial statements, the corresponding line items from 2004 to 2006 were adjusted. 2) Excluding goodwill amortization and write-downs.

6 Consolidated balance sheet (in CHF millions) 31 / 12 / / 12 / 07 Change absolute as % Cash and cash equivalents Money-market instruments Due from banks Loans and advances to customers Mortgage loans Trading portfolio assets Financial investments Non-consolidated holdings Tangible fixed assets Intangible assets Accrued income and prepaid expenses Other assets Assets Total subordinated assets Total claims on non-consolidated holdings and significant shareholders of which claims on the Canton of Vaud Money-market paper issued Due to banks Customer savings and investment accounts Other customer accounts Medium-term notes Bonds and mortgage-backed bonds Accrued expenses and deferred income Other liabilities Value adjustments and provisions Liabilities Reserves for general banking risks Equity capital Capital reserve Own equity securities Retained earnings Minority interests - equity Net profit before minority interests Minority interests Shareholders equity Total liabilities and shareholders equity Total subordinated liabilities Total liabilities to non-consolidated holdings and significant shareholders of which liabilities to the Canton of Vaud

7 Consolidated income statement (in CHF millions) Change absolute as % Interest and discount income Interest and dividend income from financial investments Interest expense Net interest income Fees and commissions on lending operations Fees and commissions on securities and investment transactions Fees and commissions on other services Fee and commission expense Net fee and commission income Net trading income Profit on disposal of financial investments Total income from holdings of which other non-consolidated holdings Real-estate income Miscellaneous ordinary income Miscellaneous ordinary expenses Other ordinary income Total income from ordinary banking operations Personnel costs Other operating expenses Operating expenses Gross profit Depreciation and write-offs on fixed assets Value adjustments, provisions and losses Profit on ordinary banking operations before extraordinary items and taxes Extraordinary income Extraordinary expenses Taxes Net profit before minority interests Minority interests Net profit

8 Head office Place Saint-François 14 Case postale Lausanne Switzerland Phone: Fax: Telex: bcvl ch Swift code: BCVLCH2L Clearing number: e/09.05