Banque Cantonale Vaudoise : BCV at a glance 2022

BCV at a glance 2022

BCV at a glance

Key figures

(in CHF millions)	2022	2021	Change as %
Total assets	59 397	55 952	+ 6
Total income	1 039	1 005	+ 3
Operating profit	448	429	+ 4
Net profit	388	379	+ 3
Assets under management	108 879	112 887	- 4
Ratios
Cost/income ratio1	56.6%	56.7%
ROE	10.7%	10.7%
Tier 1 capital ratio	17.6%	17.2%
Total capital ratio	17.7%	17.3%

1 Excluding goodwill amortization and write-downs

2022 highlights

Central banks tightened monetary policy and the economic outlook worsened

• Faced with strong inflationary pressure, central banks had to act swiftly and aggressively last year. The US Federal Reserve raised interest rates seven times and the European Central Bank four times. The Swiss National Bank hiked its policy rate by 175 basis points in just six months, bringing an end to nearly eight years of negative interest rates in Switzerland.
• At the same time, economic growth slowed in many countries, sparking fears of recession. Although forecasts for Switzerland were downgraded several times, growth remained positive in 2022 at around 2%.

We delivered very strong financial results - the highest since 2007

• Our revenues were once again above CHF 1bn, rising 3% on the prior year.

•	Operating profit grew 4% to	CHF 448m,	as	we kept the rise in operating	expenses under	firm	control.
•	Net profit increased 3% year	on year to	CHF	388m, corresponding to an	ROE of 10.7% -	one	of the highest in our
	peer group.

We extended our distribution policy

• Given the strength of our results, the Board of Directors is recommending that shareholders approve an ordinary dividend of CHF 3.80 per share, up CHF 0.10 on the prior-year figure, for a total payout of CHF 327m (84% of our net profit).
• In line with the approach adopted over the last 15 years, BCV extended its distribution policy for another five years with a higher dividend range. Beginning with the 2023 reporting period, we intend to pay an ordinary dividend of CHF 3.80-4.20, barring significant changes in the economic or regulatory environment or in the Bank's situation.

We continued to execute on our longstanding commitment to corporate social responsibility (CSR)

• Over the past several years, we have rolled out a number of initiatives covering all aspects of CSR. We are also strengthening our CSR-related communication in line with evolving regulatory requirements.

• Our ongoing efforts have been recognized by ESG ratings agencies and organizations. Last year, MSCI upgraded our ESG rating to AA, a tie for the highest score awarded to any Swiss cantonal bank, and our CDP score rose from B to A-, placing us in the "Leadership" category. Ethos, a leading Swiss SRI specialist, reaffirmed our A- rating, the second highest of five scores.

The BCV share

Total shareholder return1

50%

40%

30%

+30.6%

20%

+10.4%

10%

0%

-10%

-16.5%

-20%

-30%

12/2021

01/2022

02/2022

03/2022

04/2022

05/2022

06/2022

07/2022

08/2022

09/2022

10/2022

11/2022

12/2022

BCV

Swiss Performance Index (SPI)

SWX SP Banks Index

1 Stockmarket performance over the period plus dividends and capital distributions

Listed on:	SIX Swiss Exchange	Ticker symbols:
Par value:	CHF 1	- Bloomberg: BCVN
Swiss security number:	53 175 175	- Telekurs: BCVN
ISIN code:	CH0531751755	- Reuters: BCVN.S
		2018	2019	2020²	2021	2022
Number of shares outstanding (in thousands)	8 606	8 606	86 062	86 062	86 062
Period-end share price (in CHF)	741.00	790.00	96.30	70.80	88.75
Share price high/low (unadjusted, in CHF) - high	823.00	820.00	101.40	101.60	98.80
	- low	688.00	708.00	67.50	67.30	70.70
Dividend per share (in CHF)	35.0	36.0	3.60	3.70	3.80³
Dividend yield⁴ (as %)		4.7	4.6	3.7	5.2	4.3

• All figures have been restated post 10-for-1 stock split of the BCV share on 28 May 2020 ³ Dividend to be proposed at the 2023 Shareholders' Meeting
  ⁴ Relative to the period-end share price

Share ownership structure

Share ownership by geographical zone

Registered shares owned by private shareholders 9%

Registered shares owned

by institutional shareholders 9%

Registered shares owned by BCV employees 1%

Unregistered shares 13%

Registered shares owned by the Canton of Vaud 67%

Registered shares owned by non-Vaud Swiss shareholders 12%

Registered shares owned by foreign shareholders 1%

Unregistered shares 13%

Registered shares owned by Vaud shareholders 73%

Consolidated balance sheet

			Absolute	Change
(in CHF millions)	31 / 12 / 22	31 / 12 / 21	change	as %
Cash and cash equivalents	12 916	12 600	316	3
Due from banks	1 187	952	234	25
Reverse repurchase agreements	79	158	- 79	- 50
Loans and advances to customers	6 201	6 209	- 9	- 0
Mortgage loans	30 425	29 373	1 052	4
Trading portfolio assets	206	200	5	3
Positive mark-to-market values of derivative
financial instruments	1 160	368	792	215
Other financial assets at fair value	897	1 212	- 315	- 26
Financial investments	5 757	4 287	1 470	34
Accrued income and prepaid expenses	70	67	3	5
Non-consolidated holdings	87	86	0	0
Tangible fixed assets	376	393	- 17	- 4
Intangible assets	0	0	0	n/a
Other assets	37	46	- 9	- 20
Assets	59 397	55 952	3 445	6
Total subordinated assets	0	0	0	0
of which subject to mandatory conversion
and/or conditional write-off	0	0	0	0
Due to banks	5 975	3 378	2 597	77
Repurchase agreements	1 008	1 458	- 450	- 31
Customer deposits	38 395	38 195	199	1
Trading portfolio liabilities	3	2	1	81
Negative mark-to-market values of derivative
financial instruments	450	273	177	65
Other financial liabilities at fair value	1 006	1 340	- 335	- 25
Medium-term notes	0	2	- 2	- 100
Bonds and mortgage-backed bonds	7 942	7 313	629	9
Accrued expenses and deferred income	154	139	14	10
Other liabilities	725	183	542	296
Provisions	27	24	3	11
Liabilities	55 683	52 308	3 376	6
Reserves for general banking risks	666	666	0	0
Share capital	86	86	0	0
Capital reserve	35	36	- 1	- 4
Retained earnings	2 554	2 493	60	2
Currency translation reserve	- 2	- 2	- 0	- 5
Own shares	- 14	- 15	1	6
Minority interests in equity	0	0	0	7
Net profit	388	379	10	3
of which minority interests	0	0	- 0	- 4
Shareholders' equity	3 713	3 644	69	2
Total liabilities and shareholders' equity	59 397	55 952	3 445	6
Total subordinated liabilities	0	0	0	0
of which subject to mandatory conversion
and/or conditional write-off	0	0	0	0

Consolidated income statement

	2022	2021	Absolute	Change
(in CHF millions)			change	as %
Interest and discount income	524.5	480.5	44.0	9
Interest and dividend income from financial
investments	21.4	18.0	3.4	19
Interest expense	- 84.2	- 26.0	58.3	224
Net interest income before loan impairment
charges/reversals	461.7	472.6	- 10.9	- 2
Loan impairment charges/reversals	2.8	- 8.2	- 10.9	- 134
Net interest income after loan impairment
charges/reversals (NII)	464.5	464.4	0.1	0
Fees and commissions on securities
and investment transactions	291.6	312.1	- 20.5	- 7
Fees and commissions on lending operations	39.1	42.1	- 3.0	- 7
Fees and commissions on other services	73.1	67.8	5.3	8
Fee and commission expense	- 60.4	- 64.7	- 4.2	- 7
Net fee and commission income	343.4	357.3	- 13.9	- 4
Trading income on fixed-income instruments and
equity securities	27.5	38.2	- 10.7	- 28
Trading income on foreign currencies, banknotes,
and precious metals	168.7	117.5	51.3	44
Trading fee and commission expense	- 7.5	- 12.5	- 5.0	- 40
Net trading income and fair-value adjustments	188.7	143.2	45.5	32
Gains/losses on disposals of financial investments	10.1	4.3	5.7	132
Income from equity investments	5.5	5.5	0.1	1
of which other non-consolidated holdings	5.5	5.5	0.1	1
Real-estate income	6.6	7.0	- 0.4	- 5
Miscellaneous ordinary income	22.9	24.3	- 1.4	- 6
Miscellaneous ordinary expenses	- 2.3	- 0.6	1.6	266
Other ordinary income	42.8	40.5	2.3	6
Total income from ordinary banking operations	1 039.4	1 005.4	34.1	3
Personnel costs	- 352.9	- 349.3	3.6	1
Other operating expenses	- 163.7	- 155.8	7.9	5
Operating expenses	- 516.7	- 505.2	11.5	2
Depreciation and amortization of fixed assets and
impairment on equity investments	- 69.6	- 72.0	- 2.4	- 3
Other provisions and losses	- 5.4	0.6	6.0	963
Operating profit	447.7	428.8	18.9	4
Extraordinary income	1.2	12.6	- 11.4	- 90
Extraordinary expenses	- 0.0	- 0.2	- 0.2	- 94
Taxes	- 60.6	- 62.5	- 1.9	- 3
Net profit	388.3	378.7	9.6	3
Minority interests	- 0.0	- 0.0	- 0.0	- 4
Net profit attributable to BCV shareholders	388.3	378.7	9.6	3