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In the age of generative AI, personal client interaction remains a key differentiator for Swiss private banks
In the IFBC Sector Report – Swiss Private Banking, we present our latest assessments of the performance and value creation of Swiss private banks. We also analyze current challenges and trends. The published annual reports of 28 Swiss private banks provide a comprehensive data foundation.
In 2025, large private banks achieved a median net new money (NNM) growth rate of 3.0%. Small private banks achieved stronger NNM growth of 5.5%.
The return on assets (ROA) of large private banks fell by one basis point. For small private banks, the significant NNM growth was accompanied by a 1.4-basis-point decline in ROA.
The profitability of Swiss private banks, expressed as the RoE-CoE spread, was only slightly positive in 2025 (1.1% for large private banks and 0.1% for small institutions). Last year, there was a wide range in operating performance between the best and worst-performing Swiss private banks, both among large and small institutions.
Christian Hirzel, Partner, Financial Services: “Swiss private banks continued to see strong net new money growth, but showed significant differences in performance in terms of profitability.”
Net New Money Growth
Despite a challenging market environment, Swiss private banks achieved encouraging results in commission-based business last year, which was attributable in particular to strong net new money inflows.
Top 5 – Cost/Income-Ratio
Top 5 – Return on Assets
Top 5 – RoE-CoE-Spread (Profitability)
Noel Sager, Director of Financial Services: “In 2025, large private banks achieved, on a median basis, higher profitability on total equity than small private banks.”
A robust commission-based business reduces the operating result’s dependence on interest rates and creates a more resilient earnings base. Actively promoting new asset growth remains a key strategic lever, although greater focus must be placed on limiting the ongoing decline in margins, particularly at larger private banks.
Maintaining high cost efficiency over the long term and generating an appropriate return on equity remains a challenge for many private banks. If performance improvements cannot be achieved organically, corporate transactions remain strategic options for boosting growth and scaling the cost base.
The targeted use of AI enables Swiss private banks to sustainably increase cost efficiency by automating standardized and administrative processes. The resources freed up as a result can be increasingly directed toward personalized client service and building long-term client relationships. Especially in the age of generative AI, personal client interaction remains a key differentiator and value proposition for Swiss private banks.
IFBC Sector Report - Swiss Private Banking
(The document is available in German only.)
IFBC supports its clients in the banking sector in effectively designing financial management systems, executing corporate transactions, and performing valuations. For detailed insights from the study, please contact: Christian Hirzel and Noel Sager.
More information about Financial Services.
Also of interest to you, our article on best practice in financial bank management at Swiss banks.
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