Banque Cantonale de Geneve

Latest Results (14.08.2024):

Record Earnings

Banque Cantonale de Geneve (BCGE) posted an excellent economic performance in the first half of 2023. Net profit rose by 49.0% to reach a record CHF 116.9 million. All performance indicators are at a high level. Assets under management and administration stood at CHF 34.9 billion while client and mortgage loans amounted to CHF 18.8 billion. Shareholders' equity rose 3.7% to more than CHF 2 billion. Operating profit rose sharply to CHF 137 million, with solid equity capital coverage at 16.9%. Barring a deterioration in the economic situation and taking into account current business developments, the Bank expects overall earnings for the year to increase. The annual results for 2023 will be published on 05 March 2024.

Sharp Rise in Business Turnover

Because of its strategic positioning, Banque Cantonale de Geneve was able to capture the dynamism of the Geneva economy, both domestically and internationally. Assets under management and administration rose 4.6% to CHF 34.9 billion, and client and mortgage loans rose a total of 1.5% to CHF 18.8 billion. Net profit reached a record level of CHF 116.9 million, up 49.0%. The Bank recorded a marked increase in revenues, with turnover rising 25.7% to total CHF 290.6 million. The Bank adapted well to the change in interest rates, as can be seen from its net interest income of CHF 187.0 million. Sources of revenue remain well diversified, with commissions at CHF 67.3 million and trading operations at CHF 17.8 million. The proportion of turnover in EUR and USD reached 25%, reflecting the international focus of the BCGE Group’s activities. Operating expenses of CHF 141.6 million reflect the Bank's investment in new skills and technologies to support future growth. The Group's workforce grew by 13 new positions and now totals 887 employees (full-time equivalents).

Growth in Assets Under Management and Administration

Private client assets at Banque Cantonale de Geneve increased by CHF 904 million (4.8%) to CHF 19.7 billion in the first half of 2023. Institutional clients grew by 4.2%, passing the CHF 15 billion mark. New discretionary mandates contributed CHF 112 million to the balance sheet and Synchrony’s 41 funds totalled CHF 3.8 billion. The 1816 online trading platform welcomed its 12,000th investor.

Continued Increase in Shareholders’ Equity

Shareholders' equity at Banque Cantonale de Geneve rose by CHF 74 million in the first half of 2023, crossing a symbolic threshold to reach CHF 2.058 billion. The consolidated equity capitalisation ratio increased further to 16.9%, well above the required standard of 12.7%. BCGE is among the ranks of the most well-capitalised and secure banks, as reflected in its AA-/A-1+/Stable rating (confirmed by S&P in July 2023).

BCGE Share Performance

The BCGE share price continued its steep ascent during the first half of 2023, ending the period at CHF 217.0. This increase reduces the gap between the value of shareholders' equity and that of the market capitalisation, even if the potential for appreciation remains significant, with the market value representing 76% of the book value (CHF 285.8).