Switzerland’s private banking sector is feeling the squeeze with profits at its 13 private banks dropping 24% year-on-year in 2012 to CHF225m, Swiss National Bank statistics data suggests.
The data showed profits decreased significantly during the crisis in 2008, when they were at CHF357m, to CHF315 in 2009, with only a slight 4.4% recovery in 2010 when they reached CHF329m.
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The number of job losses at private banks also spiked in 2012. There were 638 job losses in the 2011-2012 period (4,836 down to 4,198 jobs), a 13% fall.
Profit from ordinary banking operations (gross profit) across all banks in Switzerland was slightly down on the previous year’s figure, by CHF1.3bn or 6.9%, to CHF17.4bn.
The main factors responsible for the decline across the whole Swiss banking sector were higher general and administrative expenses as well as higher personnel expenses (up by 2.8% to CHF41.5bn).
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By GlobalDataFeeling the pressure
The data adds to ongoing pressure on the Swiss industry from the US and others to settle disputes over untaxed assets held in its banks.
Earlier this week, the Switzerland’s lower house of parliament stalled the progress on a tax-evasion bill that would allow the country’s banks to share data with the US government.
By 126-67 with two abstentions, Switzerland’s National Council voted not to discuss the measure any further. It instead sent the plan back to the upper house – that had voted in favour of the potential bill last week – for reconsideration.
