Vaud Cantonal Bank posts record result in 2023 thanks to interest business
Published: Thursday, Feb 8th 2024, 07:00
Back to Live Feed
The Vaud Cantonal Bank (BCV) achieved a record result last year. Shareholders will therefore benefit from a higher dividend. The target range for the distribution over the next four years has also been increased.
Net profit rose by 21 percent to CHF 469 million in 2023, as the bank announced on Thursday. Operating profit also increased by 21 percent to 542 million francs.
Shareholders should benefit from the result and receive a 50 centime higher dividend of CHF 4.30 per share. As the majority shareholder, the canton of Vaud will receive a total of CHF 282 million, compared to CHF 247 million in the previous year.
Costs under control
Operating income was driven in particular by the rise in interest rates. Net interest income increased by 28% to CHF 596 million.
However, net commission income fell slightly (-1%) to CHF 339 million, while net trading income increased slightly (+1%) to CHF 190 million. The Group's other income fell by 19% due to the sale of a property in the previous year.
Overall, operating income thus rose by 12% to CHF 1.16 billion. Costs rose comparatively little: operating expenses increased by 5 percent to CHF 541 million, with personnel expenses rising by 3 percent and operating expenses by 8 percent. The bank attributes this to increased IT and financial information costs as well as general inflation.
Financial targets raised
Assets under management increased by 4 percent to 112.9 billion. The net inflow of new money amounted to CHF 539 million. The second-largest cantonal bank reported total assets of 58.9 billion at the end of December (+1%).
BCV Group expects "a comparable business performance" for the current 2024 financial year as in previous years. However, the results are likely to be below the record level of 2023, according to the outlook.
However, the company is looking to the future with confidence: the dividend target range for the five-year period from the 2023 financial year, which was announced with the 2022 annual results, will therefore be increased. An ordinary dividend of between 4.30 and 4.70 per share is now to be distributed in these years. Previously, CHF 3.80 to 4.20 had been announced.
BCV has also raised its financial targets: The bank is reportedly aiming for a cost/income ratio of 55 to 57 percent and a return on equity (ROE, based on balance sheet equity) of 10 to 12 percent. The ROE was 12.5 percent in 2023, according to the statement.
©Keystone/SDA
English 
German 
French 
Spanish 
Arabic