Banque Cantonale Vaudoise

Latest Results (22.12.2024):

Revenues Stable at CHF 581m

In the first half of 2024, Banque Cantonale Vaudoise reported stable total revenues of CHF 581 million. Net interest income remained steady at CHF 290 million, as increased business volumes counterbalanced a less favorable interest-rate environment compared to the first half of 2023. Fee and commission income rose by 7% to CHF 181 million, driven by positive financial-market trends and high personal-banking transaction volumes. However, net trading income decreased by 15% to CHF 89 million due to lower income from active balance-sheet management.

Operating Profit of CHF 258m

Banque Cantonale Vaudoise's operating expenses increased by 5% to CHF 283 million in H1 2024. Personnel costs rose by 7% to CHF 194 million, primarily due to higher staff numbers in IT and cybersecurity and various bank projects. Other operating expenses remained relatively flat at CHF 89 million, with a slight increase of 1%. Depreciation and amortization saw an 8% rise to CHF 39 million, leading to a 6% decline in operating profit, which stood at CHF 258 million.

Net Profit of CHF 221m

Despite a decline in taxable income, Banque Cantonale Vaudoise's tax expense remained unchanged at CHF 37 million, following Switzerland's decision to implement the OECD's minimum corporate tax rate. The bank's net profit for the first half of 2024 contracted by 8% to CHF 221 million. This figure still represents the second-best H1 bottom line in the bank's history, excluding exceptional items, with a return on equity (ROE) of 11.5%, one of the highest in its peer group.

Balance Sheet Growth

Banque Cantonale Vaudoise's total assets grew to CHF 60.5 billion, marking a 3% increase from the end of 2023. Cash and cash equivalents remained stable at CHF 12.6 billion, while mortgage lending expanded by 5% to CHF 33.3 billion, reflecting a dynamic real-estate market. Other loans stayed stable at CHF 6.1 billion, as increased corporate lending offset ongoing Covid-19 loan reimbursements. Customer deposits were also stable at CHF 36.7 billion, with a slight increase of 1%.

CHF 370m Paid Out to Shareholders

In line with its dividend policy, Banque Cantonale Vaudoise distributed CHF 4.30 per share to its shareholders in May 2024, totaling a payout of CHF 370 million. This dividend was an increase of CHF 0.50 per share and represents a total dividend yield of 4.0% based on the bank's 2023 closing share price. The bank's solid financial position is further supported by a CET1 ratio of 17.0% and shareholders' equity amounting to CHF 3.7 billion.