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1. Company Snapshot

1.a. Company Description

Banque 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.

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1.b. Last Insights on BCVN

Banque Cantonale Vaudoise's recent performance was positively driven by its resilient financials, showcasing strong mortgage growth and stable dividends despite a challenging economic landscape. The company's ability to navigate uncertainties, coupled with a slight dip in net profit, underscores its stability. European market optimism, with the STOXX Europe 600 Index reaching new highs, has buoyed investor sentiment. As a dividend stock, Banque Cantonale Vaudoise offers a compelling opportunity for investors seeking stability and income, with a history of consistent payouts.

1.c. Company Highlights

2. BCV's 2025 Financial Performance: Stability and Growth

BCV's revenue remained stable in 2025, with a marginal decrease of 0.4%, while the net profit stood at CHF 430 million, 2% less than the previous year. The bank's diversified business model helped mitigate the impact of the interest rate environment, with a reduction in interest rate revenues being compensated by an increase in commission business. The actual EPS figure was not disclosed, but analysts had estimated a revenue growth of 2.0% for the next year.

Publication Date: Feb -15

📋 Highlights
  • Revenue Stability & Diversification:: Revenue decreased by 0.4%, but the reduction in interest rate revenues (-CHF28M NII) was offset by growth in commission-based income (+CHF25M).
  • Net Profit Resilience:: Net profit reached CHF430M (down 2% YoY), maintaining strength amid interest rate challenges, supported by a stable dividend proposal of CHF4.40/share.
  • Business Line Performance:: Retail banking saw 5% mortgage loan growth and 4% deposit increase, while Wealth Management benefited from Forex and structured product trading gains.
  • Financial Strength Metrics:: CET1 ratio at 18% provides growth flexibility, and LCR remains "comfortable," with financial investments rising CHF1.3B due to strategic allocation.

Business Line Performance

The retail banking segment saw a steady increase, with mortgage loans up 5% and customer deposits up 4%, driven by fewer competitors since Credit Suisse's departure. The corporate banking segment also performed well, with SME loans increasing, while deposits were slightly down. Wealth Management had a strong year, driven by Forex business and structured products.

Financial Highlights

The bank's financial results were characterized by a decrease in Net Interest Income (NII) by CHF 28 million, which was largely offset by an increase in commissions by CHF 25 million. The bank's financial investments rose by CHF 1.3 billion, as part of its financial strategy. Customer deposits increased by 0.6%, and bonds and mortgage bonds were up by 1.7 million.

Valuation and Dividend Policy

With a Price-to-Tangible Book Value (P/TBV) ratio of 2.52, the bank's valuation appears reasonable. The Dividend Yield stands at 3.99%, indicating an attractive return for investors. The bank's dividend policy is based on a 4.3-4.7% trajectory, which is not a commitment but rather a guideline. As Pascal Kiener stated, "the bank will not lower the dividend and will aim to increase it over time."

Outlook and Growth Prospects

The bank expects the Swiss economy to remain resilient, with 1% growth over the next two years. The mortgage business and real estate are expected to continue growing, with a focus on quality growth and target areas with low vacancy rates. The bank's diversified business model and stable financial performance position it well for future growth.

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.74%)

6. Segments

Wealth Management

Expected Growth: 6.47%

The 6.47% growth in Wealth Management at Banque Cantonale Vaudoise is driven by increasing demand for discretionary portfolio management, robust investment performance, and strategic expansion into new markets. Additionally, the bank's digital transformation efforts, enhanced client experience, and strong relationships with independent asset managers have contributed to this growth.

Corporate Banking

Expected Growth: 5.83%

Strong loan growth driven by increased corporate lending in Switzerland, particularly in the Vaud region, coupled with a rise in transaction banking activities and a growing demand for cash management services. Additionally, the bank's strategic focus on digitalization and innovation has enhanced its corporate banking offerings, attracting new clients and increasing revenue.

Retail Banking

Expected Growth: 4.77%

The 4.77% growth in Retail Banking at Banque Cantonale Vaudoise is driven by increasing demand for digital banking services, a strong mortgage market, and a growing customer base in the Vaud region. Additionally, the bank's focus on customer relationships, competitive pricing, and innovative product offerings have contributed to this growth.

Corporate Center

Expected Growth: 4.77%

The 4.77% growth of Banque Cantonale Vaudoise's Corporate Center is driven by a strong Swiss economy, increasing demand for corporate banking services, and the bank's strategic expansion into new markets. Additionally, the center's focus on digital transformation, cost optimization, and risk management has improved operational efficiency, contributing to its growth.

Trading

Expected Growth: 6.37%

Banque Cantonale Vaudoise's 6.37% growth is driven by strong loan growth, particularly in mortgages and corporate lending, as well as a solid asset management business. Additionally, the bank's focus on digitalization and cost control measures have contributed to improved operational efficiency, leading to increased profitability.

7. Detailed Products

Private Banking

Personalized financial services for high net worth individuals, including investment advice, portfolio management, and wealth planning.

Corporate Banking

Financial solutions for businesses, including cash management, trade finance, and risk management.

Retail Banking

Everyday banking services for individuals, including current accounts, credit cards, and personal loans.

Mortgage Loans

Home financing solutions for individuals and businesses, including fixed-rate and variable-rate mortgages.

Investment Funds

A range of investment funds covering various asset classes, including equities, bonds, and real estate.

E-Banking

Online banking services allowing customers to manage their accounts, pay bills, and transfer funds remotely.

Credit Cards

A range of credit cards offering rewards, cashback, and travel insurance benefits.

Insurance Services

A range of insurance products, including life insurance, non-life insurance, and pension plans.

8. Banque Cantonale Vaudoise's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Banque Cantonale Vaudoise is medium due to the presence of alternative financial institutions and digital payment systems.

Bargaining Power Of Customers

The bargaining power of customers for Banque Cantonale Vaudoise is low due to the bank's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Banque Cantonale Vaudoise is medium due to the bank's dependence on technology providers and other third-party vendors.

Threat Of New Entrants

The threat of new entrants for Banque Cantonale Vaudoise is high due to the increasing trend of fintech startups and digital banking platforms.

Intensity Of Rivalry

The intensity of rivalry for Banque Cantonale Vaudoise is high due to the competitive Swiss banking industry and the presence of established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 80.94%
Debt Cost 3.95%
Equity Weight 19.06%
Equity Cost 4.82%
WACC 4.11%
Leverage 424.77%

11. Quality Control: Banque Cantonale Vaudoise passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Banca Mediolanum

A-Score: 7.4/10

Value: 4.3

Growth: 4.9

Quality: 8.2

Yield: 9.4

Momentum: 9.5

Volatility: 8.3

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BCV

A-Score: 6.6/10

Value: 3.7

Growth: 5.9

Quality: 4.9

Yield: 7.5

Momentum: 7.5

Volatility: 10.0

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A-Score: 6.4/10

Value: 4.7

Growth: 4.9

Quality: 5.7

Yield: 8.1

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Volatility: 5.0

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A-Score: 6.1/10

Value: 4.6

Growth: 3.9

Quality: 4.8

Yield: 6.9

Momentum: 10.0

Volatility: 6.3

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Monte dei Paschi

A-Score: 5.5/10

Value: 5.7

Growth: 3.4

Quality: 5.9

Yield: 6.2

Momentum: 8.5

Volatility: 3.3

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Oberbank

A-Score: 5.2/10

Value: 3.9

Growth: 6.8

Quality: 5.1

Yield: 2.5

Momentum: 3.0

Volatility: 10.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

114.8$

Current Price

114.8$

Potential

-0.00%

Expected Cash-Flows