Banque Cantonale Vaudoise

S&P Global Ratings' outlook on Switzerland-based BCV is stable, reflecting our view of a very high likelihood of support for the bank from the Canton of Vaud (AAA/Stable/--) 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 revise 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,

...Banque Cantonale Vaudoise (BCV) displays strong metrics amid challenges economic conditions and should remain resilient over the next two to three years. BCV has strong fundamentals and is the second-largest bank by assets size among the Swiss Cantonal banks, just ahead of Basler Kantonalbank. It has been able to achieve a net profit of Swiss Franc (CHF) 379 million and a return on average common equity (ROE) of 10.5% in 2021 the highest among Swiss cantonal banks. In the first half of 2022, BCV delivered good results with a net profit of CHF197 million, up to 14% from a year ago, and a ROE of about 11%, showing the good resilience of its business model. The good 2022 first half-results were mainly driven by an increase in fees and commissions income, in trading income, mainly driven by foreign exchange trading activities, and lower credit risk provisioning due to the economic rebound after the pandemic...

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