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Banque Cantonale Vaudoise (CH:BCVN)
:BCVN
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Banque Cantonale Vaudoise
(BCVN)
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Rating:69Neutral
Price Target:
CHF110.00
▲(9.56% Upside)
Action:N/ADate:01/04/26
The score is driven primarily by solid financial profitability but tempered by inconsistency in recent revenue, leverage, and cash-flow trends. Technicals add support due to an above-average uptrend and positive momentum, while valuation is helped by a strong dividend yield but offset by a mid-range P/E.
Banque Cantonale Vaudoise (BCVN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF10.63B
Dividend Yield4.39%
Average Volume (3M)39.10K
Price to Earnings (P/E)20.1
Beta (1Y)0.43
Revenue GrowthN/A
EPS GrowthN/A
CountryCH
Employees2,089
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.50
Shares Outstanding86,061,900
10 Day Avg. Volume35,031
30 Day Avg. Volume39,097
Financial Highlights & Ratios
PEG Ratio-2.69
Price to Book (P/B)1.83
Price to Sales (P/S)6.29
P/FCF Ratio1.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.96
Revenue Forecast (FY)CHF1.16B
Banque Cantonale Vaudoise Business Overview & Revenue Model
Company DescriptionBanque Cantonale Vaudoise provides a range of financial services in Vaud Canton and rest of Switzerland, the European Union, North America, and internationally. The company offers current, savings, and retirement accounts; credit and payment cards; mortgage, personal, home, business, and construction loans; and production equipment financing products, and working capital and international trade finance products. It also provides a range of banking products, such as investments, financial planning services, and trading through its online platform; and cash management services, as well as instruments for hedging exchange-rate and interest-rate risk; asset management services; and investment and hedging products, such as currencies, equities, bonds, derivatives, and structured products. In addition, the company engages in the market transactions in equities, fixed-income instruments, forex, and precious metals on behalf of clients. Further, it provides life and disability insurance products, and online banking services; manages finances and investments of high-net-worth individuals; tax planning, estate planning, and financial planning; and retirement, life insurance, and disability coverages. The company operates through a network of approximately 63 branches and 220 ATMs. It primarily serves retail and business customers, and public sector institutions. The company was founded in 1845 and is headquartered in Lausanne, Switzerland.
How the Company Makes MoneyBCV makes money primarily through (1) net interest income and (2) fee and commission income, supplemented by (3) trading and other financial income and (4) other operating income. Net interest income is generated from the spread between interest earned on interest-bearing assets—most notably client loans such as residential and commercial mortgages and other corporate/consumer lending—and the interest paid on funding sources such as customer deposits and other borrowings; the size of the loan book, deposit base, and prevailing interest-rate environment materially influence this earnings stream. Fee and commission income comes from charging clients for services such as asset and wealth management (e.g., management and advisory fees), investment funds and structured products distribution, securities custody and brokerage, financial advisory and portfolio services, and transaction/payment services; these revenues typically vary with client assets under management, client activity levels, and market conditions. Trading and other financial income can arise from the bank’s market activities and the revaluation or realization of positions used for client servicing and treasury/risk management, with results affected by market volatility and risk limits. Other operating income may include items such as service charges and miscellaneous banking-related revenues. Information on specific partnerships or counterparties materially contributing to earnings is null.
Banque Cantonale Vaudoise Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call presents a largely constructive picture: revenues were stable (‑0.4%), net profit held up well at CHF 430 million (‑2%), commissions and trading income helped offset declines in core NII, capital and liquidity metrics (CET1 18%, HQLA +CHF1.3bn, shareholder equity ≈CHF4bn) are strong, and retail/mortgage volumes grew (mortgages +5%, deposits +4%). Key challenges are the decline in NII (pure NII down ~CHF31m, ≈‑5%), continued low trade finance activity, slightly higher personnel costs, and a multi-year uptick in the loan-to-deposit ratio—none of which appear to threaten the bank’s stability in the near term. Overall, positive operating resilience and strong balance-sheet metrics outweigh the headwinds.Q4-2025 Updates
Positive Updates
Revenue Stability
Group revenue essentially stable, down only 0.4% year-over-year, reflecting resilience across business lines.
Solid Net Profit
Net profit of CHF 430 million, only 2% below prior year (2024 was the second-best result in BCV history), demonstrating strong profitability in a challenging interest-rate environment.
Dividend Maintained
Proposed dividend of CHF 4.40 per share, unchanged from prior year, reflecting a conservative but shareholder-friendly distribution policy.
Commission Growth Partially Offsetting NII Decline
Net interest income (NII) declines were largely offset by higher commissions: NII before loan impairments fell by about CHF 26–31 million while commissions rose by approximately CHF 25 million.
Wealth & Trading Performance
Wealth management, trading and structured products performed well: trading income reported at CHF 195 million (stable year-over-year) and business-level trading income up to CHF 106 million from CHF 99 million (≈+7%).
Net New Money and AUM Growth
Net new money of CHF 3.8 billion and favorable market performance of CHF 6 billion; assets under management up about 8%.
Strong Capital and Liquidity Metrics
CET1 ratio at a robust 18% (Basel final provided a positive uplift of ~1.4 percentage points), shareholder equity approaching CHF 4 billion, LCR and NSFR at comfortable levels.
Retail & Mortgage Volume Growth
Retail banking volumes increased: mortgage loans up ~5% and customer deposits up ~4% in key segments; overall volume categories (mortgage, other loans, deposits, AUM) showed increases generally between 2% and 6% depending on segment.
Higher HQLA / Liquidity Reserve
Financial investments held for liquidity (HQLA) increased by CHF 1.3 billion as part of a deliberate liquidity strategy; customer deposits up 0.6%.
COVID-19 Bridge Loan Recoveries
90% of COVID-19 bridge loans repaid (81% by customers, 9% by the confederation), leaving limited residual exposure and signaling better-than-expected recovery in that program.
Negative Updates
Net Interest Income Pressure
Core NII pressures: pure NII before balance-sheet management fell from CHF 627 million to CHF 596 million (down CHF 31 million, ≈-5%), driven by lower interest-rate-related revenues.
Slight Decline in Net Profit
Net profit declined 2% to CHF 430 million versus the prior year; while small, this reflects the impact of the interest-rate environment compared with an exceptionally strong 2024.
Trade Finance Weakness
Trade finance activity remains at a very low level due to geopolitical headwinds; only a modest increase of ~8% from a depressed base and management expects continued limited activity (±10%).
Rising Personnel Costs
Total operating costs broadly stable but personnel costs increased (shift from other operating costs) driven by integration of IT hosting resources into headcount, putting modest upward pressure on expenses.
Slight Increase in SME Provisions
A small increase in provisions for SMEs was noted; management emphasized levels remain low and defaults are largely idiosyncratic rather than systemic.
Loan-to-Deposit Ratio Trend & Funding Mix
A medium-term trend of rising loan-to-deposit ratio (multi-year increase) was flagged as a topic of attention; management acknowledged the need to monitor funding mix and be cautious though no immediate funding issues were reported.
No Formal Forward Guidance
Management declined to provide formal forward guidance or numeric outlook, citing the bank's stable business model—this may leave some investors seeking clearer near-term guidance unsatisfied.
Company Guidance
Management said it will not give formal numerical guidance, instead stressing a stable, diversified business model and directional expectations: FY25 revenues were broadly flat (-0.4%) with net profit CHF 430m (down 2% y/y) and a proposed unchanged dividend of CHF 4.40 (within the communicated CHF 4.30–4.70 interval); retail mortgage volumes +5% and retail customer deposits +4% (overall volumes up 2–6% by segment), trade finance +8%, customer deposits +0.6%, net new money CHF 3.8bn and market performance adding CHF 6bn (AUM +8%); pure NII fell from CHF 627m to CHF 596m (‑CHF31m) with NII before impairments down ~CHF 26–28m, balance‑sheet management charges ~‑CHF70m offset by trading income +CHF89m (net +CHF19m) and reported trading income CHF195m (business view CHF106m vs CHF99m); financial investments/HQLA increased CHF 1.3bn, shareholders’ equity is ~CHF 4bn and CET1 stands at 18% (described as “excessive” vs a longer‑run operating range of ~14–15%), LCR/NSFR at comfortable levels, COVID bridge loans 90% repaid (81% by customers, 9% by the Confederation), and management expects Swiss/Vaud GDP ≈1% over the next two years (0.8–1.5%) with population growth ~1.1–1.3% p.a.; BCV will target cautious, quality mortgage growth of ~4–5% and retain a prudent stance on capital and the dividend.Banque Cantonale Vaudoise Financial Statement Overview
Summary
Solid profitability and generally stable earnings power, but recent revenue softness (2024) plus volatility in leverage (notable 2023 spike) and cash flows (2023 negative operating/free cash flow) reduce overall consistency.Income Statement
Profitability is solid for a regional bank, with net margins consistently strong (~35%–41%) and net income holding in a relatively tight range from 2020–2024. However, growth has turned choppy: revenue fell sharply in 2024 after modest gains in prior years, and operating profit trends weakened versus 2023, indicating less favorable operating momentum heading into the most recent year.72
Positive
Balance Sheet
The balance sheet shows acceptable profitability on equity (roughly 9%–12% return on equity across the period) and equity has been fairly stable. The key concern is leverage volatility: debt-to-equity spiked materially in 2023 before improving in 2024, which increases risk and suggests funding/asset mix shifts that are less steady than ideal for a bank.64
Positive
Cash Flow
Cash generation is volatile. Operating and free cash flow were strongly positive in several years (notably 2020 and 2024), but 2023 showed negative operating and free cash flow, highlighting sensitivity to working-capital and balance-sheet movements typical in banking. Free cash flow is generally well-supported by earnings when positive, but the year-to-year swings reduce overall cash-flow quality.58
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.12B | 1.14B | 1.15B | 1.03B | 1.00B | 949.80M |
| Gross Profit | 577.00M | 1.15B | 1.13B | 1.03B | 1.00B | 949.80M |
| EBITDA | 507.70M | 0.00 | 0.00 | 518.90M | 513.20M | 445.60M |
| Net Income | 326.75M | 440.60M | 469.20M | 388.30M | 378.70M | 330.80M |
Balance Sheet | ||||||
| Total Assets | 61.22B | 60.63B | 58.87B | 59.40B | 55.95B | 53.19B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 12.07B | 12.60B | 14.10B | 13.55B | 12.90B |
| Total Debt | 13.88B | 9.45B | 16.38B | 7.94B | 7.32B | 6.91B |
| Total Liabilities | 57.46B | 56.70B | 55.02B | 7.94B | 7.32B | 6.91B |
| Stockholders Equity | 3.76B | 3.93B | 3.85B | 3.71B | 3.64B | 3.57B |
Cash Flow | ||||||
| Free Cash Flow | 5.96B | 5.96B | -271.00M | 290.00M | 1.07B | 3.15B |
| Operating Cash Flow | 6.12B | 6.12B | -189.00M | 344.00M | 1.13B | 3.21B |
| Investing Cash Flow | -2.65B | -2.65B | 227.00M | -52.00M | -57.00M | -44.00M |
| Financing Cash Flow | -1.48B | -1.48B | -2.14B | 24.00M | -24.00M | 3.00M |
Banque Cantonale Vaudoise Peers Comparison
UnderperformOutperform
Sector (68)
CH:BCVN
Banque Cantonale Vaudoise
123.20
31.43
34.24%
GB:0QM2
Berner Kantonalbank AG
397.00
163.15
69.77%
GB:0RE6
Walliser Kantonalbank
149.50
35.65
31.31%
GB:0QPU
Valiant Holding
166.54
54.12
48.14%
DE:1Y61
Zuger Kantonalbank AG
11,600.00
6,083.77
110.29%
CH:LLBN
Liechtensteinische Landesbank AG
96.90
20.94
27.57%
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