Swiss regional lender Banque Cantonale Vaudoise (BCV) reported a 5% increase in net profit to CHF 225 million for the first half of 2025, as total revenue rose 2% to CHF 593 million. Operating profit climbed 5% to CHF 263 million, driven by growth in fee-based and trading income despite a stagnant net interest margin.
Net interest income remained flat at CHF 268 million year-on-year, as higher lending volumes offset the impact of lower interest rates. Fee-based revenue advanced 5% to CHF 206 million, supported by stronger capital market activity, while trading income rose 3% to CHF 102 million, partly due to structured product deal flow. Other ordinary income was essentially unchanged at CHF 17 million.
Operating expenses increased 2% to CHF 287 million, with personnel costs up 1% to CHF 201 million and other expenses rising 3% to CHF 86 million. Depreciation and amortization fell 5% to CHF 40 million. Return on equity stood at 11.3%, while the bank maintained a robust capital position with a CET1 ratio of 17.6% and total equity of CHF 3.8 billion.
Balance sheet expansion continued, with total assets rising 3% to CHF 63.3 billion. Mortgage lending grew 2% to CHF 36.3 billion, while other loans increased 3% to CHF 6.6 billion. Customer deposits on the liability side climbed 3% to CHF 39.4 billion.
Asset under management jumped 6% to CHF 141.8 billion, including CHF 5.3 billion from market performance and CHF 2.4 billion in net new money inflows. The inflows were sourced from both retail and private banking clients as well as institutional wealth management. In May, BCV paid CHF 379 million in dividends at CHF 4.40 per share. Both S&P and Moody’s affirmed the bank’s ‘AA’ and ‘Aa2’ ratings with stable outlooks.
