Vaud Cantonal Bank makes less profit in the first half of the year

Specifically, the operating profit as a measure of operating performance fell by 3 percent to CHF 250.8 million in the first half of the year, as the bank announced on Thursday. At the bottom line, consolidated profit also fell by 3 percent to CHF 214.6 million. However, this was still the third-best result in the bank's history, after the records set in the two previous years.

Decline in interest business

Net income from the interest business fell sharply by 8 percent to CHF 268.0 million, mainly due to the renewed significant drop in interest rates. In contrast, the bank was able to increase net income from commission and services business by 8 percent (CHF 195.7 million). This was due to the positive development on the financial markets and high customer transactions.

The growth of 11 percent in the trading business (CHF 93.3 million) was mainly due to the high market volatility. At CHF 579.3 million, total operating income remained almost constant at the previous year's level.

Costs down slightly

Operating expenses fell slightly by CHF 1.2 million to CHF 282.3 million. The 2 percent increase in personnel expenses was offset by a 6 percent decrease in operating expenses.

BCV was also able to attract net new assets of CHF 0.9 billion. These came from domestic private clients, SMEs and institutional clients. Overall, assets under management rose by 2 percent to 126.5 billion francs, partly due to the good investment performance in the first half of the year.

The bank did not provide an outlook for the year as a whole in the press release.

The cantonal government has also nominated Eftychia Fischer for re-election as Chairwoman of the Board of Directors and Jean-François Schwarz as Deputy Chairman. Their term of office is due to end after four years on December 31, 2029.