Jyske Bank plans to stop offering its wealth management services in Switzerland as its private banking subsidiary suffered a "massive decline" in business volumes.
Denmark’s second-largest listed lender has said that "a number" of its 38 employees in Switzerland will be offered jobs elsewhere in the group.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The bank said that the Swiss unit of Jyske is "experiencing stricter statutory requirements and increasing regulation" which would warrant higher investments, and in light of the current earnings prospects, "such investments will not be profitable in future".
Jyske Bank has already closed its private banking units in the Netherlands and France and will consolidate its services at two locations in Copenhagen and Gibraltar. The lender also experienced a doubling in loan defaults during 2014.
In Switzerland, private banks are preparing for wider industry consolidation, due to low interest rates and increased regulation.
Jyske is not the first bank to withdraw its services from Switzerland. Bank of America, Morgan Stanley and Lloyds have all sold their Swiss banking operations over the past two and a half years and RBS is seeking a buyer for Coutts’ Swiss operations.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe number of Swiss private banks fell to 139 at the end of 2013 from 182 in 2005. About one-third are now unprofitable, KPMG said in a report in August 2014.
