Half Year 2024 Banque Cantonale Vaudoise Earnings Call Transcript
Key Points
- Strong growth in the mortgage business, driven by a dynamic market and population growth in Switzerland.
- Stable revenues despite a challenging interest rate environment.
- Second-best H1 results in the company's history, despite being below last year's performance.
- Retail banking performing well with a 4% mortgage growth and increased transaction activity.
- Solid financial ratings and a stable deposit base, indicating strong financial health.
- H1 results were below last year, with a decrease of EUR 6 million.
- Trade finance business volume down 9% compared to last year due to geopolitical uncertainties.
- Higher operational costs driven by IT integration and cybersecurity investments.
- Increased tax rate due to new OECD minimal tax rate regulations, resulting in CHF 3 million higher taxes.
- Loan-to-deposit ratio at its highest since 2011, indicating potential stress on funding ratios.
Good afternoon, everybody. Let me just directly on page 4. Those are, for me, the forming points in those results.
First of all, we are operating in a set positive economy. Business trends are all up. We will discuss that later. Basically, they're going to be strong, very resilient. Maybe we don't have a spectacular growth, but nevertheless, this is a growth expected between 1% and 1.5%.
Second main point, basically a strong growth in the mortgage business. We will explain that later. Our revenues are stable. But as you have seen in the results this year a component of different FX being growth in mortgage business or in credit business, and, let's say, impact of the movement of interest rates as well as also some element in the balance sheet management, which were less positive than last year.
So basically, H1 result below last year. This was expected. We also communicated that in February when we announced the 2023 result. So basically, it's minus EUR6 million. But nevertheless,
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