Foreign bank profits drop

Foreign banks in Switzerland saw their profits decrease by 38 per cent in 2009 to SFr1.95 billion ($1.7 billion).

The group, which represents around 45 per cent of banks in Switzerland’s financial centre, put the loss down to write-offs and declining interest rates and commission.

The number of employees also dropped, by eight per cent to 20,000, the Association of Foreign Banks in Switzerland reported in Zurich on Wednesday.

Although the amount of private wealth management in the 155 companies increased from SFr940 billion to SFr980 billion, more than SFr10 billion in client funds flowed out.

Regarding the tax debate involving Switzerland and other countries, association president Alfredo Gysi said the foreign banks supported the introduction of an anonymous withholding tax for foreign bank customers. The European Union on the other hand is calling for the automatic exchange of information and data.

Foreign banks generate two per cent of Swiss GDP, according to the association’s own figures. The biggest foreign bank is HSBC in Geneva. Other big players are Deutsche Bank and Crédit Agricole.

swissinfo.ch and agencies