Switzerland's BCV Sees Dip In Profits

Stephen Little

20 February 2014

, the Lausanne, Switzerland-headquartered bank, reported a net profit of SFr280 million ($314.2 million) for 2013, down 10 per cent from the previous year.

"The decline reflected one-off items, in particular relating to the US Department of Justice's program aimed at settling the tax dispute between Switzerland and the USA," BCV said. The bank's cost-income ratio went from 60 per cent to 61 per cent.

Operating profit was SFr471 million, a decline of 3 per cent from the previous year, while total revenues edged down 2 per cent year-on-year to SFr991 million, the bank said in a statement.

Profit on ordinary banking operations before one-off items and taxes was SFr342.8 million, a fall of 13 per cent.

Net interest income was SFr501.5 million, down 3 per cent from 2012, while net fee and commission income was SFr41.3 million, down 12 per cent from SFr47 million in 2012.

Extraordinary income came in at SFr21 million, reflecting releases of credit-risk provisions, as well as a real-estate disposal in connection with the relocation of group subsidiary Piguet Galland & Cie SA’s activities to a single site.

Group assets under management were up 6 per cent to SFr83.9 billion. Net new funds amounted to SFr1.6 billion for the period, with SFr2.9 billion in onshore fund inflows significantly outweighing the SFr1.3 billion in offshore fund outflows, the bank said.