IFBC Sector Report – Swiss Banking

IFBC Sector Report – Swiss Banking

In our IFBC Sector Report – Swiss Banking you will find our results from the analysis of a total of 87 Swiss retail and private banks on profitability, value creation and valuation.

 

To assess profitability, we analysed the operating income per employee for 56 Swiss retail and 31 private banks. The retail banks could continue on their way of increasing their profitability by improving the average operating income per employee also in 2019. On the other hand, private banks had to accept a decline in the average operating income per employee to CHF 78’000. Thus, last year the median of the operating income per employee of all private banks was 54% below that of the retail banks (CHF 168,000).

Retail banks

Development of operating income per employee

retailbanken-bild

Private banks

Development of operating income per employee

privatbanking-bild-1

At the same time, the costs of the retail banks did not increase at the same rate as the operating profit, which resulted in the lowest cost/income ratio since 2014. The private banks, in contrast, were unable to reduce their costs significantly, which is the reason for the highest average cost/income ratio level since 2013.

Retail banks

Development of cost/income ratio

Entwicklung-CostIncome-Ratio_Retailbanken_EN_Web

Private banks

Development of cost/income ratio

Entwicklung-CostIncome-Ratio_Privatbanken_EN_Web

Further analyses for Swiss retail and private banks in the areas of “share price analysis and valuation”, “profitability” and “value creation” can be found in our IFBC Sector Report – Swiss Banking.

To download the IFBC Sector Report – Swiss Banking (publication in German), please click here.

IFBC Sector Report Swiss Banking

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IFBC Team

info@ifbc.ch