The Banque Cantonale Vaudoise (BCV) reported a 5% increase in first-half net profit to 225 million Swiss francs, defying a prolonged low-interest-rate environment that has weighed on Swiss financial institutions.
Operating income rose 5% to 263 million francs, while total revenue grew 2% to 593 million francs. Net interest income, the bank’s largest revenue stream, held steady at 268 million francs as higher lending volumes offset margin pressure. Mortgage lending increased 2% to 36.3 billion francs, while other loans rose 3% to 6.6 billion francs amid a still-active Swiss real estate market.
Customer deposits climbed 3% to 39.4 billion francs, while assets under management expanded 6% to 141.8 billion francs, driven by a net inflow of 2.4 billion francs from retail, private banking, and institutional clients. Commission income, the second-largest revenue source, rose 5% to 206 million francs, supported by strong wealth management performance and a favorable market backdrop.
Trading income increased 3% to 102 million francs, partly due to higher activity in structured products. Operating expenses grew 2% to 287 million francs, with personnel costs rising 1% and administrative expenses up 3%, remaining below revenue growth.
BCV did not provide full-year guidance but highlighted a solid capital position, with a CET1 ratio of 17.6% and equity totaling 3.8 billion francs. Recent credit ratings from major agencies reaffirmed the bank’s strong creditworthiness.
