Overview of Banks in Switzerland
The banking sector in Switzerland differs by a large with regard to its size, business focus, geographically and in legal form. Swiss National Bank is the Central Bank of Switzerland and which form the monetary policy of the country as an independent central bank. A primary goal of SNB is price stability and creating an appropriate environment for economic growth. The banks in Switzerland make a significant contribution to the success of the Swiss financial center. After the financial crisis in 2008/09, Switzerland did many changes in financial regulations.
The Swiss financial market supervisory Authority (FINMA) is the responsible body for banking regulations, and it is the supervisory authority for the bank, securities dealer, and other financial institutions. The main role of FIMAS is to protect investors, the interest of creditors and policyholders and to ensure the proper functioning of financial markets. The top two banks in Switzerland account for over 50% of the banking sector total assets and deposit. A stable rating by Moody’s on the Swiss banking system helps to a resilient economy and increase household wealth. SNB divide the banking system in Switzerland as a big bank, cantonal banks, regional and saving banks, Raiffeisen banks, other banks (including stock exchange banks, other banking institutions, and foreign-controlled banks), branches of foreign banks, and private bankers.
Top 10 Banks in Switzerland
Here is a list of the top 10 Banks in Switzerland, which are as follows:
1. UBS Group AG
UBS is a leading company in Switzerland present in all major financial centers worldwide. UBS has offices in more than 50 countries, with 36% of its employees working in Switzerland, and it employs about 60,000 people around the world. UBS provides services to private institutional, corporate clients, and retail clients in Switzerland with superior financial advice and solutions. In Switzerland, UBS operates through 280 branches and 4,500 client-facing staff. The bank reaches 80% of the Swiss wealth and serves one in the three households. It is the only country where UBS country maintains its leading position in all of the five business areas that is wealth management, corporate and institutional banking, retail, assets management, and investment bank services. The bank net profit to shareholders for 2018 is 4.897 billion dollars in 2018 as compared to its 2017 figure of 969 million dollars. The bank posted a Profit of 690 Million US dollars during Q4 2018, which is short of expectations.
2. Credit Suisse Group AG
Credit Suisse bank founded in 1856, and today bank has a global reach with operations in more than 50 countries and 46,840 employees from over 170 different nations. The bank serves through three regionally-focused divisions to its clients that are, International wealth management, Swiss universal bank, Asia Pacific. Again this division supported by two subdivisions that are global markets and investment banking and capital markets. Group posted an annual income of CHF 3.4 billion, Up 90 % against 2017 and net income to shareholders of CHF 2.1 billion for 2018. A group is one of the most important groups in the world on which international financial stability depends.
3. Julius Baer
It is a multinational, oldest and largest private bank founded in 1890. The bank offers services of wealth management, Investment solution, assets management to Its private and institutional investors; it also provides services related to Securities and foreign exchange trading, loans, mortgage, and other services. Net profit to shareholders grew by 4% to CHF 735 million and earning per share by 4% to by CHF 3.37 during the full year of 2018, and the adjusted net profit of the group is increased slightly to CHF 810 Million. The asset is under management CHF 382 billion, 2% lower than the previous year. Julius Baer Bank ended 2018 with stable growth and net new money growth.
4. Raiffeisen Switzerland
Raiffeisen is the third-largest bank in the Swiss banking sector and leading Swiss retail bank. The bank has 1.9 million co-operative members and 3.8 million clients and operates through 896 locations throughout Switzerland. As of June 2018, assets under management with the bank were CHF 211 billion and CHF 185 billion loans to clients. The operating profit of the bank during the first half of 2018 was CHF 416 million. The market share in the mortgage business is about 17.6%, and it provides a wide range of products and services through its group of companies, joint venture, and enterprise.
5. Zurich Cantonal Bank
The bank was founded in 1870 as the bank of the citizen of Zurich. Bank offers a comprehensive range of products and services, and it’s a counterweight to major banks and private banks. Net Profit rises to CHF 788 Million in the year 2018, which is 1 % higher than the previous year. Operating profit grows by 14% to CHF 892 Million. Bank offers services in private banking, commercial banking, and assets management. The Bank has a total asset of CHF 164 billion and more than 5,000 employees working in the bank, and it operates through more than 80 branches in Switzerland.
6. Banque cantonale de Genève (BCGE)
It is the regional bank founded in 1816 and offers a comprehensive range of products and services for retail and corporate customers. It provides services like deposit products, personal and mortgage loans, debit and credit cards, assets management, private banking, etc. Bank posted excellent results in 2018, with operating income reached CHF 161.3 Million, an increased of 25.7%, and net profit is CHF 91.2 million. Bank operates with 21 branches and 124 ATMs, and it employs nearly 800 people. The bank is rated as stable by top rating agencies.
7. EFG International
The bank was established in 1995 by two entrepreneurs, and they have a wealth of experience in Swiss private banking. It is one of the largest Swiss banks and provides all services in private banking to individuals and institutions. Assets under management with the bank are CHF 142.7 billion, and net profit is of CHF 129.2 Million during the first half of the year 2018. It has 8 branches in Switzerland and its new bank as compared to other top banks in Switzerland.
8. Basler Kantonalbank
It is the Swiss regional bank founded in 1899 and which offer services like deposit, mortgage and other loans, portfolio management, foreign currency trading and so on. The bank mainly operates in the North West region of Switzerland through a network of numerous branches. The net income of the bank is about CHF 114.81 Million. The bank is part of 24 cantonal banks that are serving 26 cantons of Switzerland.
9. Migros Bank AG
Migros Bank was founded in 1958, and today Migros bank is one of the leading banks in Switzerland with over 800,000 customers. Migros bank has 67 branches in Switzerland and around 200 ATMs. Bank offers services like the saving accounts and mortgage, credit and investment services, financial services, e-banking services, etc. Mortgage volume was up 4.3% in 2018, and Income of the bank was rose by 3.5% and profit by 2.3% to CHF 228 Million. Micros bank continued its growth in 2018.
10. Bank J. Safra Sarasin
It is a Swiss private bank founded in 1841, and the bank offers a high level of services and expertise to private and institutional investors. In 2019 the bank won the world’s best private bank for social responsibility award. The bank reported CHF 315.3 Million of net profit during 2017, which was 25% higher than the previous year. The bank employs around 2000 people, and its branches are present worldwide in more than 25 locations. Bank operates through five segments Private Banking, Trading and family segment, Asset management, product and sales management, and corporate center segment.
This has been a guide to Banks in Switzerland. Here we have discussed the 10 Topmost banks in Switzerland with their financial structure. You may also look at the following articles: