Banque Cantonale de Geneve : 2023 Annual Results

BCGE posted a remarkable performance for 2023. Net profit rose by 31.4% to reach a record CHF 231.2 million. Revenues rose by 24.0% to CHF 589.9 million, reflecting the Bank's timely strategic positioning, which has enabled it to capture the dynamism of buoyant economic sectors. Performance indicators remain high. Assets under management and administration rose to CHF 35.3 billion while client receivables and mortgage loans totalled CHF 19.2 billion. Operating profit rose significantly to CHF 281.7 million. Shareholders' equity increased 10.1% to CHF 2.184 billion, and the coverage ratio reached 17.0%, demonstrating BCGE is part of a circle of well-capitalised and sound banks. The dividend to be proposed at the General Meeting of Shareholders reflects an increase of 18%, amounting to a record CHF 6.50. Barring a significant deterioration in the economy or a sharp drop in interest rates, the Bank expects overall earnings for 2024 to be comparable to those of this past year.
Main consolidated figures for the 2023 financial year Bank revenues surpass the CHF 500 million mark 2023 proves to have been a record year for BCGE with net profit increasing 31.4% to CHF 231.2 million (including an extraordinary result of CHF 10.5 million) and operating profit up 44.5%, for a total of CHF 281.7 million. Growth in revenues, which rose 24.0% to CHF 589.9 million, reflects the Bank's ability to capture the dynamism of buoyant economic sectors. Assets under management and administration increased 5.5% to CHF 35.3 billion while client and mortgage loans rose a total of 3.7% to CHF 19.2 billion. Net interest income reached CHF 390 million while commissions totalled CHF 133 million and trading income CHF 38 million. Operating expenses are keeping pace with company growth and have grown to CHF 285 million, with a cost/income ratio that at 48.3% falls just under 50%. Reflecting the success of international business, the share of revenues in EUR and USD stands at 23.5%. The Group created 43 new jobs in 2023, bringing its total employee count to 917 (full-time equivalents).
BCGE: a major financier of Geneva's economy and the region Loans granted by the Bank to companies and private individuals increased by CHF 677 million, now totalling CHF 19.2 billion. More than 22,000 businesses trust BCGE to support them, an increase of 735 from last year. The moderate share of mortgages in the Bank's balance sheet total (45%) is evidence of the high degree of diversification of its business lines and markets.
Growth in assets under management and administration Private client assets rose CHF 870 million over the period to CHF 19.7 billion. The net contribution of new discretionary mandates was CHF 227 million while funds in the Synchrony range totalled CHF 3.9 billion. The online trading platform 1816 passed the 12,000-investor threshold. Institutional client assets rose 6.7% to CHF 15.6 million.
Continued increase in shareholders' equity Shareholders' equity continued to grow, increasing by CHF 200 million to CHF 2.184 billion. At 17.0%, the consolidated equity coverage ratio proved excellent, well above the required 12.7%. This and the Bank's Standard & Poor's AA-/A-1+/Stable rating demonstrate that BCGE is part of a circle of well-capitalised and sound banks.
BCGE share performance: +25.3% The BCGE share price rose sharply in 2023 and ended the period at CHF 225.0. Nevertheless, the share's market value is still 74% lower than its book value, which stands at CHF 303.3. Compared to the reported equity value of CHF 2.184 billion, the Bank's market capitalisation amounts to CHF 1.620 billion. The stock's upside potential therefore remains significant. Slight decrease in the number of private shareholders The overall number of private and institutional shareholders decreased in 2023, coming to a total of 15,237 shareholders, of which 14,831 private shareholders. Despite this change, the free float remains widely distributed, with 83% of shareholders holding between 1 and 50 shares. The percentage of Bank employees that are Bank shareholders remains stable at 76%. Together, these employees own 3.1% of the Bank's capital.
Strategic priorities For 2024, our strategic priorities are to be a(n):

• Core partner for the regional economy and SMEs
• Key player in the financing of private and social housing in Geneva
• Private banking specialist for the Swiss and international economies
• Expert in asset management and investment funds
• Important pillar of influence in Geneva's economy, Swiss trade, and around the world
• Promoter of banking digitalisation, accessible to all and with a human touch
• Source of support for corporate and private clients looking to optimise their energy consumption

Outlook for 2024 The Bank continues to expand and capture the dynamism of growth sectors. It is able to do so thanks to the diversity of its expertise and the alignment of its business model with the specific demands of the Geneva and Swiss economies.

• The growth of high added-value business and the loyalty of its client base reaffirm BCGE's favourable strategic positioning.
• The Bank's financial strength makes it a safe and stable financial guardian.
• The Bank expects a moderate drop in interest rates and a contracting economy, conditions likely to slow growth in revenue.
• The increase in lending will remain measured due to the regulations governing shareholders' equity and a policy of caution, particularly in real estate financing.
• The Bank is continuing to develop businesses that require less capital (e.g. private and institutional wealth management, business advice) and offers a wider range of services for businesses, such as equity financing and M&A.

Barring a significant deterioration in the economy or a sharp drop in interest rates, the Bank expects overall earnings for the year to be comparable to those of this past year.