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Who We Are
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Who We Are 2
Contents
Overview Our strategy Figures and ratios
Who We Are 3
Strong presence in Vaud
1.0
Who We Are 4
Board of Directors
1.0
Ingrid DeltenreMember of the Board of Directors
Jacques de WattevilleChairman of the Board of Directors
Jean-François SchwarzMember of the Board of Directors
Eftychia FischerMember of the Board of Directors
Fabienne Freymond CantoneMember of the Board of Directors
Peter OchsnerMember of the Board of Directors
Jack G. N. ClemonsMember of the Board of Directors
Who We Are 5
Executive Board
• Risk Management
• Financial Accounting
• Controlling
• ALM & Financial Management
• Compliance
• Legal
• Tax & Wealth Planning
• Credit Analysis Retail
• Credit Analysis SMEs & Real Estate
• Credit Analysis TF / Country and Bank
• Credit Analysis Large Corporates
• Credit Analysis Support
• Credit Recovery Management
• SMEs
• Large Corporates
• Trade Finance
• Retail Banking Branch Offices
• Multichannel Services
• Private Banking Key Clients
• Onshore Private Banking
• International Private Banking
• Independent Asset Managers
• Asset Management
• Investment Policy
• Trading
• IT Development
• IT Systems Management
• Facility Management & General Services
• Back Office
• Global Custody
• Security
• Corporate Secretary
• Strategy & Organization
• Human Resources
• Corporate Communications
• Service quality
Business Support
C. Meixenberger
Finance & Risks
T. Paulsen
Credit Management
B. Sager
Corporate Banking
A. Diemant
Private Banking
G. Haeberli
Retail Banking
J. F. Sierdo
Asset Management & Trading
S. Bichsel
Chief Executive Officer
P. Kiener
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Who We Are 6
History
0.51.0
1845 BCV was founded by the Vaud Cantonal Parliament as a corporation organized under public law
1993-95 Acquisition and merger with Banque Vaudoise de Crédit and CréditFoncier Vaudois
2002-03 Recapitalization, change of the Board of Directors, change of the Executive Board, redefinition of the governance and strategy (focus on domestic businesses)
Who We Are 7
BCV’s mission
To be guided by the principles of economically, environmentally, and socially sustainable development
To offer a comprehensive range of banking services to the local community and to contribute to the development of all sectors of the Vaud economy and to the financing of the Canton’s public-sector institutions and entities
To create value for our shareholders and clients, to be a benchmark employer, and to be a good corporate citizen
Who We Are 8
Our businesses
Retail Banking • Savings & home mortgages for retail customers located in Vaud
Corporate Banking • Commercial banking for SMEs in Vaud and larger corporations throughout Switzerland
• Transaction-based trade finance in metals, softs, and petroleum-derived products
Wealth Management • Private banking mainly for onshore clients in Vaud
• Institutional asset management mainly in Vaud
Trading • Customer-driven business mainly in forex
Who We Are 9
Key numbers
Total assets
Total income
Operating profit
Net profit
AuM
Total capital ratio1
ROE
Total staff
Branch network
CHF 50.3bn
CHF 95.9bn
CHF 477m
CHF 179m
CHF 158m
17.9%
8.8%
1,896 FTEs
63 branches & 220+ ATMs
Leverage ratio 6.1%
HY 2020FY 2019
CHF 48.4bn
CHF 97.8bn
CHF 1.0bn
CHF 419m
CHF 363m
17.3%
10.4%
1,921 FTEs
6.3%
Note(1) In accordance with FINMA Circular 2016/1, “Disclosure – banks”
Who We Are 10
Contents
Overview Our strategy Figures and ratios
Who We Are 11
Portfolio of business activities
Relative size of gross profit contribution
Retail/Direct Bank
OnshorePB
Forex
Large
Corp.
Indep. Asset Mgrs
Our business portfolio is made up of:
Three core businesses that focus on
Vaud, have a long history in the Canton,
and are an integral part of the Bank's
corporate mission:
– Retail banking
– SME
– PB Onshore
Other universal banking activities
closely linked to other businesses
(synergies through skills, products, and
operational or client-driven processes)
Activities with fewer synergies with the
three core businesses but with a clear
role in our portfolio
Struc.Products
SME
Equities,Bonds & Fixedincome
1
2
3
1
2
3
Real-estate Prof.
eBroker-age
CustodianBank
TradeFinance
OffshorePB
Inst. AM
Note:FX swap, fixed income, and equity derivatives (marginal activities – internal support for other activities like structured products)
Who We Are 12
Vision for 2025
A similar bank, building on today’s strong fundamentals• Diversified business model with moderate risk profile• Solid customer franchise and retail footprint• Strong financials• Solid governance
6 objectives to build 2025’s BCV
• High-quality service as a competitive differentiator• Integrated multichannel distribution• Better leveraging of our universal bank model• Increased attractiveness as an employer• Continuous process improvement• Enhanced CSR approach
Target: steady, sustainable growth
Who We Are 13
Main strategic objectives
Grow at least at market pace in VaudGrow at least at market pace in Vaud
Target above-market growth in VaudTarget above-market growth in Vaud
Focus on profitabilityFocus on profitability
Maintain existing franchise, slight decline going forward
Maintain existing franchise, slight decline going forward
Real-estate Professionals
Retail Banking Independent AMs
E-brokerageForex
Onshore Private Banking
SMEs
Custodian BankAsset Management Wealth Planning
Trade Finance
Large Corporates
Offshore Private Banking
Offshore Retail Banking
Structured Products
Equities, Bonds and Fixed Income
Who We Are 14
Business strategy Financial strategy
BCV’s missions
Close alignment between our business and financial strategies
• Stable earnings with a moderate risk profile
• Limited need for additional shareholders’ equity (low business growth)
• Long-lasting distribution policy with a high yield
• Surplus capital may potentially be distributed
• Universal bank with solid local roots
• Focused on three core businesses
• Operating in a low-growth environment (banking sector inSwitzerland & Vaud)
• Aiming for long-term, sustainable growth to ensure earnings stability
Strong consistency
Who We Are 15
BCV target ratios
57%-59%C/I ratio
13.0%1Capital ratio
13.5%-14.5%ROE
Target
• Minimum target: minimum equity level at which BCV can run its business while being crisis-robust
Note(1) Common Equity Tier 1 at Group level and parent company level
• Target ROE at minimum CET1 target
Who We Are 16
Horizon 1From 2008 to 2012
Horizon 2From 2013 to 2017
Ordinary dividend
Special distribution
CHF 20 to CHF 25
per share
CHF 10
per share
+
Ordinary dividend
Special distribution
CHF 22 to CHF 27
per share
CHF 10
per share
+
Distribution policy extended for another five years
Horizon 3From 2018 to 2022
Ordinary dividend
CHF 34 to CHF 38per share
CHF 3.4 to CHF 3.8per share, post 10-for-1split1
In light of the planned reduction in Vaud Canton’s corporate tax rates
Barring significant changes in the economic or regulatory environment or the Bank's situation
Note(1) 10-for-1 stock split of the BCV share took place on 28 May 2020
Who We Are 17
Delivering on promises since 20081
Horizon 1
Specialdistribution out of paid-in reserves(CHF per share)
Ordinarydividend(CHF per share)
258 267 275 275 275 275 275 284 284 284 301 310
72% 89% 88% 91% 88% 98% 93% 84% 92% 89% 86% 85%
Total amountpaid (CHF millions)
As % ofnet profit
Horizon 2
Payment year
Reporting period
2009
2008
2010
2009
2011
2010
2012
2011
2013
2012
2014
2013
2015
2014
2016
2015
2017
2016
2018
2017
Par-value reduction(CHF per share)
2.0 2.1 2.2 2.2 2.2 2.2 2.2 2.3 2.3 2.3
3.53.6
1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
3.23.0
3.23.1 3.2 3.33.2 3.2 3.3 3.3
Horizon 3
2020
2019
2019
2018
Note(1) All figures have been restated post 10-for-1 stock split of the BCV share on 28 May 2020
Who We Are 18
Enhancing our value proposition for shareholders
Aiming for long-term
sustainable growth
Improving our risk profile
Reducing our earnings variability
Ensuring high dividend
payouts for the long term
Aligning our interests with shareholders’
BCVN: a defensive stock offering steady growth and an attractive risk/return profile
Who We Are 19
Contents
Overview Our strategy Figures and ratios
Who We Are 20
Key figures
(in CHF millions)
Balance sheet31 Dec.
201631 Dec.
201731 Dec.
201831 Dec.
201930 Jun.
2020
Total assets 44,085 45,415 47,863 48,352 50,268
Advances to customers 29,849 30,233 31,756 32,768 33,274
Customer deposits 29,245 30,512 31,375 33,048 33,719
Shareholders' equity 3,420 3,457 3,522 3,586 3,435
Assets under management 85,382 86,490 87,620 97,840 95,929
Income statementFY
2016FY
2017FY
2018FY
2019H1
2020
Total income 967 967 977 1,002 477
Operating expenses 509 508 500 505 253Depr. & amort. of fixed assets and impairment on equity investments 72 70 69 71 37
Other provisions and losses 3 1 5 7 8
Operating profit 383 387 403 419 179
Net profit 310 320 350 363 158
Earnings per share 1 (in CHF) 3.6 3.7 4.1 4.2 1.8
Headcount31 Dec.
201631 Dec.
201731 Dec.
201831 Dec.
201930 Jun.
2020
Full-time equivalents 1,943 1,922 1,896 1,921 1,896
Note(1) Earnings per share have been restated post 10-for-1 stock split of the BCV share on 28 May 2020
Who We Are 21
Key ratios
Note(1) More detailed information on Group and parent company liquidity and capital ratios can be found in the Basel III Pillar 3 report, which is available at www.bcv.ch and on the BCV Investor Relations
iPad app.(2) Ratios have been recalculated without subtracting the countercyclical buffer from regulatory capital, in accordance with FINMA Circular 2016/1, “Disclosure - banks”(3) Excluding goodwill amortization and write-downs
Liquidity and capital ratios 1
31 Dec.2016
31 Dec.2017
31 Dec.2018
31 Dec.2019
30 Jun.2020
Liquidity Coverage Ratio (LCR) 113% 121% 112% 129% 130%
Leverage Ratio 6.6% 6.5% 6.2% 6.3% 6.1%
Total Risk Weighted Assets (CHF bn) 17.6 18.2 18.4 18.8 18.1
Of which: Credit risk (CHF bn) 14.8 15.0 15.4 15.7 15.1
Tier 1 capital ratio 2 17.5% 17.1% 17.1% 17.1% 17.7%
Total capital ratio 2 17.6% 17.3% 17.2% 17.3% 17.9%
Income ratios
Operating profit / avg. shareholders' equity 11.4% 11.4% 11.6% 11.9% 10.0%
Cost / income ratio 3 59.4% 58.3% 57.6% 57.7% 58.8%
Operating profit per employee (CHF K) 197 202 212 219 188
ROE 9.1% 9.4% 10.1% 10.4% 8.8%
Who We Are 22
Shareholder structure
Unregistered shares 14%
Registered shares owned by BCV employees 1%
Registered shares owned by institutional shareholders 9%
Registered shares owned by private shareholders 9%
Registered shares owned by the Canton of Vaud 67%
Share ownership structure
Unregistered shares 14%
Registered shares owned by foreign shareholders 1%
Registered shares owned by non-Vaud Swiss shareholders 11%
Registered shares owned by Vaud shareholders 74%
Share ownership by geographical zone
Note(1) Post 10-for-1 stock split on 28 May 2020(2) Relative to the period-end share price(3) Total amount distributed to shareholders in the form of an ordinary dividend together with a distribution out of paid-in reserves
31 Dec.2016
31 Dec.2017
31 Dec.2018
31 Dec.2019
30 Jun.2020 1
Number of shares outstanding (thousands) 8,606 8,606 8,606 8,606 86,061
Ordinary dividend per share (CHF) 23.0 23.0 35.0 36.0 3.6
Ordinary dividend yield 2 (%) 3.6 3.1 4.7 4.6 4.6
Total payout 3 (CHF) 33.0 33.0 35.0 36.0 3.6
Total payout yield 2 (%) 5.1 4.5 4.7 4.6 4.6
Who We Are 23
-50%
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
500%
550%
déc '08 déc '09 déc '10 déc '11 déc '12 déc '13 déc '14 déc '15 déc '16 déc '17 déc '18 déc '19
BCV total shareholder return
BCV
SPI Index
Swiss Banking Sector
Note(1) Share price performance + dividend payment + capital distribution over the periodSource: Thomson Reuters Datastream
Total return to shareholders1, from 31 December 2008 to 18 August 2020
Total return over the period
Total return2018
+5%
Total return2019
+11%
Total return 2009
+39%
Total return 2010
+27%
Total return 2011
-1%
Total return 2012
+13%
Total return 2013
+7%
Total return 2014
+17%
Total return 2015
+24%
Total return 2016
+7%
Total return2017
+19%
+512%
+177%
-3%
YTD2020
+30%
Who We Are 24
Rating
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Long term AA positive
AA stable
AA negative
AAstable
AA stable
AA stable
AA stable
AAstable
AAstable
AAstable
Short term A-1+ A-1+ A-1+ A-1+ A-1+ A-1+ A-1+ A-1+ A-1+ A-1+
Standard & Poor’s
Moody’s
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Long term A1 stable
A1 stable
A1 stable
A1stable
Aa2 stable
Aa2 stable
Aa2 stable
Aa2stable
Aa2stable
Aa2stable
Short term Prime-1 Prime-1 Prime-1 Prime-1 Prime-1 Prime-1 Prime-1 Prime-1 Prime-1 Prime-1
Who We Are 25
The BCV Investor Relations app keeps you in touch with the latest developments at BCV Group
It brings together everything of interest to shareholders, investors and analysts, including:
An overview of BCV Our key figures Annual and interim reports Press releases Pillar 3 reports BCV stock price and chart Corporate social responsibility reports Presentations for investors
The app also displays upcoming BCV events that you can add to your calendar at the push of a button. Shareholders can read the agenda for the next AGM, as well as download all the relevant documents. The app displays BCV’s credit rating, as well as credit opinions on the Bank. You can also contact BCV’s Head of Investor Relations, whose email and phone number you’ll find in the app.
Note(1) iPad is a registered trademark of Apple Inc.
BCV Investor Relations iPad1 App