Banque Cantonale de Genève is celebrating its two-hundredth anniversary
- Author: Iohan Colarusso
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The Geneva institution is the oldest of all Swiss cantonal banks: in January 2016, Banque Cantonale de Genève (BCG) blew out no less than two hundred candles.
The bank set out to mark this event with controlled and very targeted communication. It took this opportunity to strengthen its image with the different stakeholders that have directly or indirectly contributed to its success: its shareholders, customers, employees and associates, as well as the authorities that have made use of its services.
And so the Bank of the Republic was born
In 1816, philanthropists De Candolle and Tronchin decided to create an institution to encourage Geneva’s population to set up a savings.
Initially founded under the name ‘Caisse d’Épargne’, the bank subsequently underwent many evolutions. One of the major recent changes took place in 1994, which saw the merger of the Caisse d’Épargne and the Banque Hypothécaire, which gave rise to the Banque Cantonale Genevoise (BCGE) that we know today.
However, in the 90s the situation in Switzerland and particularly in Geneva suffered great instability: the real estate market flared and then fell into recession. The situation greatly disrupted the financial market, affecting most banks, in particular the BCGE. The bank encountered great difficulties, to such an extent that the State of Geneva decided to intervene and create a Foundation for the Realisation of Assets (Fondation de Valorisation des Actifs). This difficult period passed and the bank rebuilt new, solid foundations.
In the early 2000s, the BCGE opted for a new strategy, which led to significant results: the bank doubled in value and now counts 13,000 shareholders. Moreover, it set up a system for the regular distribution of dividends. The Foundation for the Realisation of Assets that enabled the bank to rectify its situation was dissolved in 2011, after having liquidated its assets on the real estate market. For information purposes, during the past fifteen years, according to historian Mr Bernard Lescaze, the BCGE successfully created nearly one billion Swiss francs in value for the entire community.
A benchmark in Geneva’s landscape
The bank is now a key stakeholder in Geneva’s economy, playing a vital role in supporting regional businesses and authorities. It is now renowned for its reliability, which is materialised by excellent scores from rating agencies such as Standard & Poors, which assessed it at A+/A -1/Stable.
The bank has therefore acquired significant influence in the economic landscape and in particular is registered on the stock exchange (code BCGE). Having become the main centre of financing of Geneva’s economy (nearly 13,700 million CHF), the total amount of contributions paid by the BCGE to the public authorities since 2005 has reached nearly 327 million CHF. The BCGE administers and manages funds reaching nearly 20.8 billion CHF.
As a key stakeholder, the bank greatly contributes to the local economy through close-at-hand services, representing the densest banking network in the canton with a total of 22 agencies and 5 spaces with 24-hour access, in addition to 132 cash machines. The bank is also naturally present in the field of new technology, with effective and evolving online banking services: NetBanking, the online stock exchange and other mobile applications.
It proposes high-quality services and products. The non-exhaustive inventory is comprised from ordinary banking services, as well as more specialised products such as asset management, contingency funds, mortgage financing and corporate loans. The bank also records trading activities in the trading rooms, with financial engineering, as well as Corporate Finance and Global Commodity Finance.
Viewed as a trustworthy partner, the BCGE is now owned by a panel of varied shareholders. However, the public shareholders (Canton of Geneva, City of Geneva and Geneva Communes) represent 72.6% of the share capital, compared to the 27.4% owned by private entities.
A desire to diversify
Historically from Geneva, the bank has also expanded throughout Switzerland: it has branches in particular in Lausanne and Zurich, particularly for personal and institutional management services.
The BCGE group is clearly applying an activity diversification strategy: its assets include the Dimension SA company, located in Lausanne, specialised in business transfers, as well as Geneva investment company Capital Transmission SA, which supports investors in business transfers and expansions.
It is also developing its activities in France with its subsidiary, BCGE France SA in Lyons, Annecy and Paris, with real estate financing services targeting a customer base essentially formed from companies and self-employed workers, as well as asset management services. Outside of Europe, the BCGE has opened offices in Hong-Kong and Dubai to represent the bank in Asia and the Middle East. Activities are focused on private banking services, in particular Global Commodity Finance. Customers therefore benefit from the advantages of a stable financial position from a political, economic and monetary perspective. More than 20% of the BCGE’s income is generated in EUR and USD currencies, underlining the international scope of its activities.
It is now number 27 in the Swiss bank ranking according to its balance sheet and employs more than 700 people.
A historic tour of Geneva to discover the BCGE
In March 2016, the BCGE set up a self-guided tour of the city of Geneva for those wanting to discover the institution’s history. Using a voice guide compatible with smartphones, the visit traces the history and the buildings once accommodating the bank’s head offices, under its original name, Caisse d’Épargne, from its creation in 1816, as well as that of the Hypothécaire bank, founded in 1847, which then merged in 1994.
Inhabitants of Geneva and tourists alike are guided through the old centre of Calvin’s Geneva for a different look at the Geneva bank.
The itinerary begins at the Hôtel-de-Ville and the visit is narrated by the famous historian Bernard Lescaze, who takes the curious between the different institutions having housed the head offices since its creation. This pleasant tour covers 1.7 km and lasts roughly 40 minutes. It culminates at the Quai de l’Ile, where the BCGE’s current head office is located.
- Categories: Banking institutions