BCV Achieves Record Results

BCV Achieves Record Results in 2023

In an impressive demonstration of financial performance, the Banque Cantonale Vaudoise (BCV) has announced a record-breaking year, capitalizing on higher interest rates to deliver outstanding results. This accomplishment not only underscores BCV’s robust strategic positioning but also heralds a period of lucrative returns for its shareholders, who can anticipate a higher dividend payout.

A Year of Exceptional Growth

The financial year 2023 saw BCV achieving a staggering net profit of 469 million Swiss Francs, marking a 21% increase from the previous year. This growth was mirrored in its business success, which ascended to 542 million Swiss Francs. The bank attributed this phenomenal performance primarily to the advantageous higher interest rates environment, which significantly boosted its interest business net success by 28%, reaching 596 million Swiss Francs.

Moreover, BCV reported a 4% increase in managed assets, totaling 112.9 billion Swiss Francs, accompanied by a net new money inflow of 539 million Swiss Francs. These figures not only reflect the bank’s strong market position but also its capability to attract and manage wealth effectively.

Mixed Results in Other Areas

While the interest business thrived, other sectors experienced mixed outcomes. The commission business remained relatively stable with a slight 1% decrease to 339 million Swiss Francs, and the trading business saw a modest 1% increase to 190 million Swiss Francs. Following the sale of a property in 2022, other income fell by 19%, indicating a diversified yet fluctuating performance across different business areas.

Against this backdrop, the total business revenue climbed by 12% to 1.16 billion Swiss Francs, against a 5% increase in business expenses, which amounted to 541 million Swiss Francs. Notably, material expenses rose by 8%, and personnel costs increased by 3%, attributed to higher IT and financial information costs, as well as general inflation.

Future Dividends and Outlook

BCV’s shareholders have a reason to celebrate, as the bank announces a dividend increase of 50 cents to 4.30 Swiss Francs per share. Looking ahead, BCV aims to maintain a higher dividend payout, targeting a range of 4.30 to 4.70 Swiss Francs per share.

Despite this optimism, BCV’s management anticipates the 2024 financial year to parallel the performance of previous years, albeit slightly below the exceptional levels of 2023.

Conclusion

BCV’s record results in 2023 are a testament to its strategic prowess and its ability to leverage favorable market conditions. While the bank faces varied performance across its business sectors, its overall growth trajectory and commitment to rewarding shareholders set a positive tone for the future.

Key Financial Highlights

Metric2023 ResultsChange from Previous Year
Net Profit469 million CHF+21%
Business Success542 million CHF+21%
Net Interest Income596 million CHF+28%
Managed Assets112.9 billion CHF+4%
Net New Money Inflow539 million CHF
Commission Business339 million CHF-1%
Trading Business190 million CHF+1%
Other Income-19%
Total Business Revenue1.16 billion CHF+12%
Business Expenses541 million CHF+5%
Dividend per Share4.30 CHF+50 cents

BCV’s performance in 2023 underscores the bank’s resilience and adaptability in a dynamic financial landscape, promising a future of sustained growth and shareholder value enhancement.

Disclaimer. Please note that the information and services provided by BMA Business Solutions, including assistance with opening bank accounts and starting businesses in Switzerland, may not be legal or compliant in all jurisdictions. It is your responsibility to ensure that the services provided by BMA Business Solutions meet the legal requirements of your country of residence or citizenship. If you have any concerns about the legality or compliance of our services, please do not hesitate to contact us.

This website may contain links to external websites. These links are provided for your convenience and information only. BMA Business Solutions does not control these external sites and cannot be responsible for their content or any risks associated with them. By using this website, you agree to do so at your own risk. BMA Business Solutions cannot be held liable for any loss or profit arising from the use of this website or its contents. We strongly recommend that you carry out your own due diligence before making any decisions based on the information provided on our website. For any financial, legal, or other advice, please consult a qualified professional advisor.

Please subscribe to our newsletter

Please subscribe to our newsletter

Scroll to Top