Banque Cantonale Vaudoise (XSWX:BCVN) Full Year 2025 Earnings Call Highlights: Navigating ...

Banque Cantonale Vaudoise (XSWX:BCVN) Full Year 2025 Earnings Call Highlights: Navigating …

GuruFocus News

Sat, February 14, 2026 at 10:03 AM GMT+9 3 min read

In this article:

BQCNF

-19.32%

This article first appeared on GuruFocus.

**Revenue:** Stable with a slight decrease of 0.4%.
**Net Profit:** CHF 430 million, a decrease of 2% from the previous year.
**Dividend:** Proposed at CHF 4.40, unchanged from last year.
**Mortgage Loans Growth:** Increased by 5%.
**Customer Deposits Growth:** Increased by 4%.
**Net Interest Income (NII):** Decreased by CHF 28 million.
**Commission Income:** Increased by CHF 25 million.
**Trading Income:** CHF 195 million, stable year-over-year.
**Total Operational Charges:** Almost stable with a shift from other operating costs to personnel costs.
**Net New Money:** CHF 3.8 billion.
**Common Equity Tier 1 (CET1) Ratio:** 18%.
**Liquidity Coverage Ratio (LCR):** At comfortable levels.
Warning! GuruFocus has detected 8 Warning Signs with XSWX:BCVN.
Is XSWX:BCVN fairly valued? Test your thesis with our free DCF calculator.

Release Date: February 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Banque Cantonale Vaudoise (XSWX:BCVN) reported a solid net profit of CHF 430 million, which is only a 2% decrease from the previous year, despite challenging interest rate environments.
The bank's diversified business model helped offset a reduction in interest rate revenues with an increase in commission business.
Retail banking showed strong performance with mortgage loans up by 5% and customer deposits increasing by 4%.
The bank maintained stable financial ratings from S&P and Moody's, and received improved ESG ratings from the Carbon Disclosure Project.
Wealth Management and trading divisions performed well, with trading income stable and structured products seeing strong expansion.

Negative Points

Interest income before balance sheet management decreased by CHF 31 million, indicating pressure on net interest income.
The bank's net interest income (NII) was down by CHF 28 million, reflecting challenges in the interest rate environment.
Trade finance operations remain at low levels due to geopolitical uncertainties, with only a slight increase of 8%.
There was a slight increase in provisions for SMEs, although overall default levels remain low.
The bank's loan-to-deposit ratio has been trending upwards, which could pose a risk if it continues to rise unchecked.

Q & A Highlights

Q: Why didn’t Banque Cantonale Vaudoise provide any outlook or guidance for the future? A: Pascal Kiener, CEO, explained that BCV has a stable business model, and providing specific guidance could lead to unnecessary discussions if there are slight deviations from expected results. The bank prefers not to issue guidance to avoid the need for profit warnings, whether positive or negative.

Story Continues  

Q: Why was the dividend kept flat this year despite stable profits? A: Thomas Paulsen, CFO, noted that the previous year’s extraordinary results led to a higher dividend. This year, the decision to maintain the dividend at CHF4.40 reflects a cautious approach given the current economic environment. The bank aims to balance between maintaining a stable dividend and adapting to economic conditions.

Q: How does BCV plan to manage its CET1 ratio, which is considered excessive? A: Thomas Paulsen stated that the bank views a CET1 ratio of 14-15% as optimal. The current higher ratio is partly due to regulatory changes that have been favorable. Over time, the bank expects the ratio to decrease slightly as it continues its dividend policy and manages risk-weighted asset growth.

Q: What is BCV’s approach to AI, and how is it being implemented? A: Pascal Kiener highlighted that AI is seen as a significant future tool, akin to the Internet. BCV is implementing AI in areas like generating leads for customer relationship managers and fraud prevention. However, the full benefits of AI will take time to realize, and the bank does not anticipate significant immediate cost savings or revenue increases.

Q: Is the increasing loan-to-deposit ratio a concern for BCV? A: Pascal Kiener acknowledged the trend of increasing loan-to-deposit ratios across cantonal banks, not just BCV. While the bank is monitoring this trend, it does not currently see it as a major concern but is cautious about maintaining a balanced funding strategy.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Terms and Privacy Policy

Privacy Dashboard

More Info

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)