Financial Year 2023
Strategy
In 2023, BCF continued to implement the Bank’s strategy. Our different business models focus on two customer segments, Corporate Clients and Private Clients, with the aim of expanding the Bank’s revenue base. The Products and Services division ensures that all the Bank’s offerings provide optimal efficiency and the best services to our clients. With this in mind, we also take ESG criteria into account.
Profitability
Operating profit reached CHF 224.3 million, an increase of CHF 50.5 million (+29.1%).
Efficiency
Once again this year, BCF was very economical with its resources. The cost/income ratio (ratio of operating expenses to operating income, after depreciation and amortization) was 36.6%.
A strong capital base
As a measure of the Bank’s soundness, FINMA has defined a minimum capital ratio of 12%. With a CET1 ratio (core capital) of 18.78%, BCF clearly meets FINMA’s regulatory requirements, despite reinstatement of the countercyclical capital buffer.
Investments in the network
For BCF, personal ties and close contact with its clients are paramount. This is why the Bank continued to invest in its network in 2023. In particular, the Morat and Chiètres branches have been completely renovated and modernized. The branches now meet ever-changing client needs and evolving trends.
More than 80 million francs for the Canton
On the strength of its excellent results, BCF was able to pay out CHF 85.8 million to the Canton, municipalities and parishes, out of endowment capital of CHF 70.0 million. This payment includes taxes as well as remuneration for the Canton’s guarantee and for the endowment capital.
Informations about the staff
With 532 employees, Banque Cantonale de Fribourg is one of the largest employers in the Canton of Fribourg. The Bank offers employees a secure job in a high-performing company, desirable working conditions, and top-quality training.
In 2023, BCF employees successfully completed 34 higher education courses, including 2 postgraduate degrees, 2 Master’s degrees, 3 HES-SO Bachelor’s degrees, 2 federal diplomas, 4 CYP programs, 6 diplomas and certificates, and 15 certifications. In addition, 20 apprentices et 6 trainees are currently in training.
Support for businesses in Fribourg
BCF fulfills its mission by contributing to the support of the cantonal economy. The Bank established the Corporate and Real Estate Professionals division in view of our staunch commitment to this segment. This division offers a comprehensive range of products and services as well as individualized service for the various economic players in the region. Essentially a «bank for business and entrepreneurs,» this division actively provides expert advice to all types of companies. It supports the development of industrial, independent, and professional real estate entities as well as municipalities and public-law corporations by providing a wide range of products and services essential for their operational and financial activities. For example, BCF covers companies’ needs for working capital, financing, foreign exchange and bank guarantees.
With advisors firmly rooted in the economic fabric of the region, BCF delivers pragmatic solutions specially suited to meet its clients’ needs. The expertise and solid experience of the special financing team provides additional support to startups, complex financial arrangements, and corporate succession transactions. Corporate succession is a central, essential concern given that one out of every two business leaders is over age 50.
With a presence across 26 branches and decision-making centres throughout the Canton, BCF maintains and develops longstanding relationships with our corporate clients by successfully identifying viable proposals while at the same time
understanding local restrictions.
Distribution of advances by industry
Real estate
In 2023, economic activity slowed, and property prices stabilized against the backdrop of inflationary pressures and uncertainty surrounding geopolitical tensions in several parts of the world and recently in the Middle East. These effects were accentuated by the Swiss National Bank’s restrictive monetary policy, which has resulted in several increases in the SNB’s key lending rate. These trends are confirmed by a study on the real estate market in Fribourg, published in collaboration with the consultancy firm Wüest Partner SA. Property prices remained broadly stable despite some reduction in demand, as limited supply kept prices buoyant. Population growth and the rising number of small households spurred demand, lowering vacancy rates and pushing up rents. Despite uncertainties in the economic environment, real estate has remained robust and appealing to investors.
As of 31/12/2023, the division dedicated to real estate companies reported loans and advances to customers totalling over CHF 13 billion.
BCF complies with the guidelines in effect issued by the Swiss Bankers Association (SBA) that govern the review, evaluation and processing of loans secured by real estate pledges as well as the guidelines on minimum requirements for mortgage financing. Its rules governing the granting of mortgage loans are based on the principles of caution and thorough analysis. BCF’s methods are based, among other factors, on the client’s financial situation and the property being financed.
Wealth Management
BCF’s Wealth Management activities initiated significant improvements as of1 July 2023, coinciding with the arrival of the unit’s new head. This transformation reflects a comprehensive approach to building our clients’ wealth, grouping together real estate assets, business holdings, pension fund assets and securities portfolios. The unit was renamed Wealth Management as of 1December 2023. BCF’s Wealth Management advisors draw on their in-depth understanding of its clients and their professional and personal backgrounds to envision solutions beyond simple stock market transactions.
BCF’s Wealth Management division offers discretionary management mandates and advisory mandates that comply with strict regulatory requirements, thereby ensuring the highest level of quality advisory services. BCF promotes management aligned with the UN Sustainable Development Goals, and in 2023 BCF enhanced its sustainable investment offering, defined according to ESG criteria.
These services are provided independently by employees based in the Canton of Fribourg. They receive the support of Wealth Planning specialists who are dedicated to helping Fribourg’s numerous entrepreneurs and employees in their transition to retirement by optimizing the management of their assets. The structuring of assets at BCF makes it possible to distinguish among solutions for short-term liquidity needs, investments for a secure retirement, and optimal transmission of wealth to the next generation.
Serving the public
BCF is at the service of the people of the Canton of Fribourg. In 2023, the Bank established a new Private Clients division to offer our diversified customer base the best possible service. This new division is responsible for managing relationships with individuals and offers individually tailored products and services in financing, wealth management, pension and financial planning, and in connection with its investment center.
BCF continues to offer its network of 26 BCF branches in the seven districts of the Canton. One of its priorities is to maintain close customer contact and deliver advice directly to clients. So, the Bank continues to renovate its branches to welcome and serve its customers in keeping with the changing needs of the market and society.
Products and services
New customer portal
The new customer portal, which was launched on 11 November 2023, offers a more user-friendly interface with fully integrated e-banking. Once logged in, the user is identified and can then navigate in both the customer portal and the bcf. ch site. It takes just seconds to order a product or make an appointment.
The new messaging system provides secure communication and exchange of documents with the advisor.
The portal offers customers the opportunity to take part in a number of exclusive promotions.
No-fee services
For many years, BCF has pursued a strategy that allows it to offer its clients all the basic services free of banking fees.
This means that individuals can benefit from the following products and services free of charge: deposit accounts, savings accounts, bonus savings accounts, savings 3 accounts, e-banking, mobile banking, TWINT, and Sesam cards. Products for customers over age 60, young people and students are also free of bank charges.
Currently, only charges related to Mastercard debit and Mastercard and Visa credit cards are passed on to customers in order to cover the costs charged by the Bank’s suppliers. The infrastructure for payments and security is expensive.
In addition, unlike its competitors, BCF is one of the few Banks that does not steer our customers toward product packages invoiced on a monthly basis. BCF transparently offer its clients the choice of services that best suit them.
Real estate
In 2023, BCF continued to renovate its branches. It has completed two major projects, with a view to preserving historical aspects of the properties while at the same time providing clients and staff with user-friendly branches adapted to today’s needs.
Morat branch
The BCF branch in Morat has welcomed a loyal clientèle in its historic building in the heart of the old city since 1892. To adapt to changing needs, the ground floor premises have now been completely renovated. The refurbished spaces – approximately 140 square meters – feature transparency and modernity. The themes of the City of Morat and the vineyards of Vully are reflected in several architectural elements. To provide convenience and quality service, the Morat branch continues to offer payment, direct debit and foreign exchange transactions. As part of the renovation, an area has been designed for advisory services. Customers also have access to ATMs, a depomat banknote counter, a rolled coin dispenser and safe deposit boxes.
Chiètres branch
The BCF branch in Chiètres has offered all the services of a local bank to neighboring and regional customers since 1971. In 2023, the ground floor was renovated and refurbished in keeping with the BCF branch renovation program. An advisory services area and a new lounge have been designed to accommodate customers more comfortably and conveniently. Customers also have access to ATMs and a depomat cash handling machine. The branch also adheres to a new energy consumption standard.
BCF's Commitments
BCF’s commitment to the social, cultural and sporting life of the Canton reflects our desire to partner with the people who make Fribourg so vibrant.
In 2023, the Bank contributed CHF 3,9 million to the development of culture, sports and social activities.
The Bank aspires to long-term collaborations through renewable partnerships of generally three years. Its partner associations can count on a fixed contribution so that they can devote themselves to their activities with peace of mind. BCF has entered into more than 100 partnerships, all while boosting its brand image and supporting the Bank’s business strategy. These partnerships create close contact with nearly 1,000 clubs and groups, as well as clubs affiliated with various umbrella organizations.
In 2023, BCF was proud of its commitments to:
CREAHM – Differently Abled Artists Workshop
Founded in 1998 by the Fribourg artist Ivo Vonlanthen, the CREAHM workshop in Villars-sur-Glâne celebrated its 25th anniversary in 2023. CREAHM enables people with disabilities and artistic skills to create and develop their own work. The CREAHM workshop is run by professional artists who share their experience and defend art in its raw state by sharing it with the public. To date, CREAHM’s artists have taken part in nearly 200 projects and exhibitions in Fribourg, throughout Switzerland and around the world.
FribourgOPEN
The first edition of the FribourgOPEN was held at the end of September 2023. For 4 days, more than 100 companies all over the Canton opened their doors to allow the public to visit and discover their know-how, activities and professions through demonstrations, worksite visits, booths for apprentices and guided tours. The companies took advantage of the opportunity to introduce themselves and showcase some 400 professions and activities. More than 4,000 visitors discovered the vibrant wealth of Fribourg’s growing economy. BCF also seized the opportunity to open its doors and welcome a curious public to learn about the Bank’s activities.
Tzampata
The Tzampata (from «tzamper,» which means to run in Bolze), is a popular footrace up 6 stairways in the city of Fribourg, through Stalden, Tour des Chats, St-Michel, St-Jost, Court-Chemin and the famous stairs of the funicular, for a total of 1,382 steps. On 30 April, some 600 intrepid runners – cheered on by a huge crowd – set off individually, with their families or in groups for a race in which only the stairs are timed. For the 2023 edition, BCF sponsored the 242 steps and 35-meter ascent up the St-Michel staircases, where the best men’s time was 30 seconds, with the best women’s time of 49 seconds.
6 heures de Fribourg
«6 heures de Fribourg» (6 hours Fribourg) is an event that promotes learning about new forms of energy, mainly through an endurance race of miniature cars powered by hydrogen fuel cell batteries. Organized by the Chamber of Commerce and Industry of the Canton of Fribourg and the Ecole des Métiers de Fribourg, it was held at the Bicubic cultural center in Romont from 4 to 6 May 2023. This educational event to promote sustainable development is aimed at Swiss primary, secondary 1 and 2, and vocational secondary 2 students. In 2023, 12 teams in the H2GP category and 9 teams of apprentices in the PRO category competed in the race to the delight of a captivated audience. The winners of the H2GP category represented Switzerland with distinction, taking 6th place at the Horizon Hydrogen World Final in Las Vegas.
Morat-Fribourg
The mythical Morat-Fribourg run needs no introduction in the Canton. Tracing the route run by a Swiss soldier to announce the Confederate victory over Charles the Bold, Duke of Burgundy, at the Battle of Morat in 1476, this race has commemorated the foundational event in the Canton of Fribourg since 1933. Close to 10,000 runners take part in this unforgettable experience, a «leg-breaking» route of just over 17 km, cheered by the unconditional support of a large crowd. Races of other distances that appropriate for runners at every level – such as the Mini-Morat-Fribourg for children sponsored by BCF – allow everyone to enjoy the excitement…until next year.
