The Banque cantonale vaudoise (BCV) went through the second year of the pandemic smoothly. The establishment has clearly increased its volumes and revenues. Operating profitability and net profit soared. The dividend is proposed to increase.
The past financial year will have been marked by a strong increase (+5%) in mortgage loans, to 29.37 billion francs, according to the indications provided Thursday by the BCV. In a context of low interest rates, interest-bearing transactions stagnated, generating gross profit of 472.6 million francs.
BCV set up provisions for credit default risk of 8.2 million francs, less than the reserves of 15.1 million in 2020. Net income from interest operations thus increased by 1% to 464.4 million.
The bank’s other business lines are on the rise, in particular commissions, which jumped 15% to 357.3 million francs. In 2021, BCV saw its assets under management increase by 9% to 112.9 billion, thanks to buoyant financial markets and net inflows of 5.7 billion. Income from trading operations amounted to 143.2 million (+3%).
Total receipts exceeded one billion francs, increasing by 6% to 1.01 billion. The Vaud establishment controlled its expenses, these having taken 2% to 505.2 million. The ratio between expenditure and income was thus improved by 2 percentage points to 56.7%. Operating profit soared 15% to 428.8 million.
Nearly 20% of Covid loans repaid
The bank made a net profit of 378.7 million francs, up 14%. The board of directors proposes the payment of a dividend raised from 10 centimes to 3.70 francs. The canton of Vaud will receive a total sum of 243 million francs, including 213 million in dividends. The meeting of May 5 will have the last word.
The figures published by the BCV far exceeded the forecasts of analysts polled by AWP.
The amount on the balance sheet increased by 5% to 55.95 billion francs, including 38.20 billion in customer deposits (+8%).
Regarding capitalization, the hard equity ratio reached 17.2%.
In its documentation, the BCV reports that a fifth of the Covid loans it granted under the authorities’ economic support program have been repaid.
For 2022, management is counting on business progress “in the continuity of past years”, provided that the economic situation and the financial markets do not deteriorate “significantly”.
This article has been published automatically. Source: ats/awp
