Raiffeisen Switzerland plans up to 180 job cuts

Raiffeisen launches cost-cutting programme despite a significant rise in profits Keystone-SDA

Raiffeisen’s profits rose by almost a fifth in the first half of 2026. However, as part of its strategy to improve long-term sustainability, Switzerland’s second-largest banking group is cutting jobs in a bid to boost efficiency.

Raiffeisen Switzerland said on Wednesday that it aims to cut around CHF60 million ($74.7 million) in staff and operating costs by 2027. The measures could lead to the loss of up to 180 of its 10,989 full-time roles (as of mid-2026).

The bank said more than half of the affected positions could be phased out through natural staff turnover, the removal of vacant posts, a reduction in external contractors and early retirement schemes.

Profit surge

Elsewhere, the group, which has 748 branches and is headquartered in St Gallen, reported a strong first half of 2026. Net profit rose by 18.9% to CHF659 million, while operating profit, a key measure of business performance, increased by 17.1% to CHF785 million.

Overall, operating income rose by 7.6% to CHF2.04 billion. Net interest income remained by far the bank’s biggest source of revenue, accounting for around 70% of the total, and increased by 6.3% to CHF1.41 billion.

Income from commissions and services rose by 8.4% to CHF397 million, supported by the bank’s efforts to expand its investment business. Trading income also saw a strong increase, climbing by almost a quarter to CHF169.4 million. The bank said the rise was driven largely by higher client activity in foreign exchange and precious metals trading amid increased market volatility.

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Costs also increased, but at a much slower pace than income, up 3.0% at CHF1.16 billion. Staff costs were up 4.0%, while non-staff costs rose by just 0.5%. Raiffeisen said the increase in staffing costs reflected targeted investment in customer advisory services at its branches.

As income grew faster than costs, the bank’s cost-to-income ratio, a key measure of efficiency, improved to 56.8% from 59.4% in 2025. That moved Raiffeisen closer to the 50% mark. In the banking sector, a cost-to-income ratio below 50% is generally considered very strong.

Significant inflow of new funds

Raiffeisen continued to expand its lending business in the first half of the year. Mortgage lending rose by 1.9% to CHF235.3 billion by the end of June, while total customer loans reached CHF248.5 billion. The bank also noted a slight decline in provisions for impaired loans compared with the end of last year. At 0.14% of customer loans, the level remains very low.

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On the funding side, Raiffeisen said customer deposits showed “encouraging growth”, rising by 1.3% to CHF228.7 billion. Customer funds now cover 92.0% of the bank’s lending.

Growth also continued in Raiffeisen’s investment and pensions business, which attracted net new money of CHF3.3 billion in the first half of the year. That figure already exceeds the total recorded for the whole of last year. Combined with positive market performance, client assets rose by almost 10% to CHF65.6 billion. The bank also said it opened 45,000 new investment accounts during the period.

Optimistic despite a challenging environment

The management team, led by new CEO Gabriel Brenna, remains confident about the outlook for the rest of the year. Among other things, it expects property prices to continue rising, despite a temporary increase in planning permissions.

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Raiffeisen also sees no immediate need for the Swiss National Bank to raise interest rates. Despite ongoing geopolitical and economic uncertainty, Raiffeisen said it expects business performance in the second half of 2026 to remain stable and above last year’s level.

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Translated from German, reviewed by an English Department journalist.