Record profits at Swiss banks in 2023
-
Loading... - Alice Mosley
- 29 Aug 2024
- 96 Views
- 0 Like
- 0 Comment
Swiss banks achieved record profits of 25.9 billion francs in 2023, a dramatic increase from the 6.5 billion francs recorded the previous year. This surge in profits marks a historic high, largely influenced by the significant one-off effects stemming from UBS's acquisition of Credit Suisse.
Key Highlights:
- Operating Performance: The aggregate operating profit of Swiss banks, a key indicator of their performance, rose by 2.9% to 72.3 billion francs. This growth reflects overall improved business despite some challenges.
- Interest and Commission Income: While interest income fell slightly by 0.7% to 172.4 billion francs due to high interest expenses following Credit Suisse's collapse, trading activities flourished amid a volatile stock market, increasing by 21.3%. However, income from commissions and services saw a decline of 6.7%.
- Assets Under Management: Total assets under management grew by 6.9%, reaching 8,392 billion francs. Notably, 3,794 billion francs were managed on behalf of foreign clients, while 4,597 billion francs came from domestic individuals.
- Mortgage Market: Mortgage claims increased by 2.3%, with cantonal banks accounting for two out of five mortgages and major banks handling nearly a quarter.
- Employment Growth: Despite the merger of Credit Suisse and UBS, the banking sector saw a 1.4% increase in full-time positions, bringing the total number of employees to approximately 93,300 in 2023. This growth has continued into 2024, with many banks expecting employment numbers to remain stable or increase further.
Outlook for 2024:
For the current year 2024, experts anticipate stable business success compared to 2023. While interest income is expected to decline due to falling interest rates, positive developments in commission, services, and trading businesses are likely to offset or mitigate these losses.
