Swiss commercial banks achieved higher profits last year, mortgage loans tipped the CHF1 trillion ($1.02 trillion) mark and costs were saved by reducing headcounts. These are the findings of an annual report from the Swiss National bank (SNB).
The rise was fuelled by people taking advantage of a continuing climate of low interest with rates on Swiss mortgages declining seven basis points to 1.45%, the report states. On the other side of the coin, Swiss savers saw little return. The average rate of interest on bank accounts fell two basis points to 0.12%.
The report notes that there were five fewer banks in Switzerland last year (248) than in 2017. Out of these, 216 reported a profit which totaled CHF12.8 billion ($13 billion) when added together – an increase of CHF2.5 billion from 2017. The big banks, UBS and Credit Suisse, made up nearly CHF5 billion of this total (up year-on-year from CHF3.2 billion).
The remaining banks recorded combined losses of CHF1.3 billion (CHF700 million more than 2017).
The number of full-time posts in the banking sector fell by 1,547 to 107,388. This resulted in cost savings of CHF1.3 billion, practically all booked by UBS and Credit Suisse who between them saw a decline of 1,257 full time posts.
Foreign-owned banks also saw a staff reduction of 1,000 posts, but headcount in the banking sector was boosted by other banks hiring personnel.
Popular Stories
More
Aging society
No house generation: the impossibility of buying property in Switzerland
Living longer: What do you think about the longevity trend?
The longevity market is booming thanks in part to advances in the science of ageing. What do you think of the idea of significantly extending human lifespan?
This content was published on
An unstable glacier above the Swiss village of Blatten has stopped breaking up, but there is still no question of lifting a landslide alert.
Swiss education chief wants fewer mobile phones in schools
This content was published on
The new head of the Swiss cantonal education authority would like to ban mobile phones in schools, apart from use in lessons.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Swiss regulator fires warning over buy-to-let property lending
This content was published on
At its annual media conference on Thursday, the Swiss Financial Market Supervisory Authority (FINMA) turned its attention to a trend of investors putting their money into bricks and mortar, with the support of banks. A stress test carried out by FINMA late last year on 18 banks showed worrying signs of what might happen once…
This content was published on
The image of Swiss banks has returned for the first time to pre-crisis levels, according to a survey. Cybercrime remains a concern, however.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.