Banque Cantonale Vaudoise

Our outlook on BCV is stable, reflecting our view of a very high likelihood of support for the bank from the Canton of Vaud in the event of financial stress. Even if BCV's credit quality changed to the extent that we revised its group stand-alone credit profile (SACP) downward or upward by one notch, we would not raise or lower our long-term rating on the bank, all else being equal. This is because, given our 'AAA' rating on the Canton of Vaud, any one-notch revision of the SACP would be offset by an opposite change in the uplift we attribute for extraordinary government support. All else being equal, a two-notch change in BCV's group SACP, upward or downward, would likely

... displays strong metrics amid the economic slowdown due to the COVID-19 pandemic. BCV has strong fundamentals and is the third largest by asset size among the Swiss cantonal banks, just behind Basler Kantonalbank. It achieved a net profit of Swiss Franc (CHF) 331 million and a return on average common equity (ROE) of 9.2% in 2020, one of the highest among its cantonal peers. In first-half 2021, BCV delivered good results with a net profit of CHF173 million, up 10% from a year ago, and a ROE of about 9.7%, showing the resilience of its business model. These good first-half 2021 results were mainly spurred by an increase in fee and commission income (11%) as well as contained cost of risk and operating expenses. Strong capitalization and a robust liquidity profile should continue to support the bank. This hinges on the risk-adjusted capital (RAC) ratio before adjustments remaining comfortably above 10% over the next 18-24 months. S&P Global...

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