Banque Cantonale de Geneve : BCGE Group half-yearly results 2022

BCGE Group half-year results As at 30 june 2022

I BCGE Group half-year results as at 30 June 2022

2 Summary

Highlights	3
Consolidated balance sheet - BCGE Group	6
Consolidated income statement - BCGE Group	7
Consolidated statement of changes in equity - BCGE Group	8
Balance sheet - Parent company	9
Income statement - Parent company	10

Impressum

Publisher: Banque Cantonale de Genève [e-mail]

Only the French version shall be binding

I BCGE Group half-year results as at 30 June 2022

Highlights	3

Record net profit

BCGE posted an excellent economic performance in the first half of the year. Net profit rose by 21.9 % to a record CHF 78 million. All performance indicators are at a high level, driven by increased business volumes. Assets under management and administration stood at CHF 33.0 billion, while client and mortgage loans amounted to CHF 18.7 billion. Shareholders' equity rose steadily to CHF 1.869 billion (+2.3%). Operating profit rose sharply to CHF 94 million with a solid capital cover of 16.5%. Barring a deterioration in the economic situation and taking into account the projected business developments, the bank expects an increase in the overall earnings for the year. The results for the year 2022 will be published on 21 February 2023.

• Turnover continues to grow at a steady pace
  Thanks to its strategic focus, the bank is able to benefit from the promising sectors of the economy at home and abroad.
  Assets under management and administration totalled CHF 33.0 billion (-3.3%), while client and mortgage loans totalled CHF
  18.7 billion (+2.1%). Net profit reached a new record at CHF 78 million.

The Bank recorded a marked increase in revenues, with turnover rising to CHF 231.2 million (+12.6%). This performance was achieved thanks to the contribution of all the Bank's business lines. Net interest income was up to CHF 133 million, while commissions were up to CHF 69.1 million and trading income to CHF 19.1 million. The proportion of turnover in EUR and USD was 29.1%, reflecting the international focus of our business. Operating expenses of CHF 129.0 million reflect the Bank's investment in new skills and technologies to support future growth. The Group's workforce grew by 22 new positions to 856 employees (full-time equivalents).

• BCGE: a major contributor to financing Geneva's economy
  Loans granted by the Bank to companies and individuals amounted to CHF 18.7 billion. 21,049 companies have placed their trust in BCGE, an increase of 287 since 31 December 2021. Mortgage loans are stable, a sign of a disciplined diversification policy, since their share amounts to 43% of the Bank's balance sheet total.

• Assets under management and administration held up well
  Private client assets increased to CHF 18.4 billion (+0.8%). Institutional client assets reflected market performance and stood at CHF 14.6 billion (-8.0%). The net contribution of new discretionary mandates was CHF 112 million, while the 40 funds in the Synchrony range totalled CHF 3.5 billion. The 1816 online trading platform passed the 11,500 investor threshold.

• Equity capital continues to increase
  Equity capital continued to grow, increasing by CHF 41.9 million in the first half of the year to a total of CHF 1.869 billion. The consolidated equity coverage ratio is strong at 16.5%, well above the required standard of 12%. BCGE belongs to the group of well-capitalised and secure banks, as reflected in its AA-/A-1+/Stable rating (November 2021).

• 192 new shareholders
  The number of private and institutional shareholders has been growing year on year, reaching 15,615 on 30 June, of which
  15,230 are private. The floating part of the capital is widely distributed as 83% of shareholders hold between 1 and 50 shares.

• Performance of the BCGE share: +7.8%
  The BCGE share price rose strongly during the first half of the year and ended the period at CHF 173.0. Despite this positive performance, there is still considerable potential for appreciation, as the intrinsic value of the share is CHF 262.2 compared to the level of equity capital.

I BCGE Group half-year results as at 30 June 2022

4 Highlights

• Strategic priorities for 2022
  The strategic priorities that guide the BCGE's development are as follows:
• • Core partner for the regional economy and SMEs
  • Key player in the financing of private and social housing in Geneva
  • Recognised experience in advisory services for Swiss and international private banking
  • Expert in asset management and investment funds
  • An important pillar for influence of Geneva's economy and trade in Switzerland and around the world
  • Innovative leader in digital banking
  • Accompanies corporate and private clients in the energy transition process

• Outlook for 2022
  The bank is continuing its commercial expansion by capitalising on the economic recovery. It relies on the diversity of its skills and on the alignment of its business model with the specific demands of the Geneva and Swiss economy.
• • The growth of high added-value business and the loyalty of its client base reaffirm the BCGEs favourable strategic positioning.
  • The bank's financial strength makes it a safe and stable custodial address.
  • The bank expects interest rates to remain low and the economic situation to improve, factors which are likely to weigh on its interest margin but will boost its commission income.
  • The increase in lending will remain moderate due to the regulations governing capital requirements and a policy of caution, particularly in real estate financing.
  • The bank is stepping up the development of its less capital-intensive businesses (private and institutional asset management, corporate advisory services) and is expanding its corporate offer (private equity and M&A).

Barring a deterioration in the economic situation and taking into account the projected business developments, the bank expects an increase in the overall earnings for the year.

	I BCGE Group half-year results as at 30 June 2022
Highlights
			5
Key consolidated figures for the first half of 2022
Results, in CHF thousand	30.06.2022	30.06.2021	Variation 2022 vs. 2021
Operating income	231,178	205,342	25,836	12.6%
Operating expenses	129,002	125,353	3,649	2.9%
Operating profit	93,738	77,258	16,480	21.3%
Half-year profit	78,426	64,345	14,081	21.9%
ROE (return on equity)	8.55%	7.46%	109 basis points	14.5%
Balance sheet volumes, in CHF thousand	30.06.2022	31.12.2021
Total assets	29,133,240	28,293,691	839,549	3.0%
Mortgage loans	12,616,793	12,665,892	(49,099)	(0.4%)
Assets under management and custody	33,031,632	34,145,974	(1,114,342)	(3.3%)
Shareholder equity	1,869,097	1,827,222	41,875	2.3%
Tier 1 capital ratio	15.28%	15.11%	17 basis points	1.1%
Ratio of regulatory capital available	16.46%	16.49%	(3) basis points	(0.1%)
Staff (full-time equivalents)	856	834	22	2.6%