Banks in Switzerland

Overview

If we talk about the wealthy nation, Switzerland is one of the few countries in Europe that stands out. With a higher per capita gross domestic product, Switzerland is among the top countries in Western Europe.

Even the value of Swiss Franc (CHF) has been quite stable compared to other currencies.

In 2009, the financial sector of Switzerland has employed 195,000 people. Out of that 135,000 people were employed only in the banking sector. In the same year, the financial sector amounted to 11.6% of total GDP and 5.6% of the workforce was employed in the financial sector.

According to Moody’s Investor Service, Switzerland’s banking system is stout because the operating conditions are so well. The only challenge of the Swiss banking system is a low-interest rate and inflation in the housing price.

Structure of Banks in Switzerland

The most important thing about Swiss banking is its financial authority, i.e. The Swiss Financial Market Supervisory Authority (FINMA) which controls and regulates the whole banking system in Switzerland.

There are two banks that have acquired more than 50% of the total deposits of the country. These banks are UBS and Credit Suisse.

Other than that, Swiss banks can be divided into few categories – foreign banks, private banks, big banks, cooperative banks (Raiffeisen group), and cantonal banks. Cantonal banks are Government-owned commercial banks that amount to around 30% of total banks in Switzerland.

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List of Top 10 Banks in Switzerland

UBS Group
Credit Suisse
Raiffeisen Switzerland
Zurich Cantonal Bank
Julius Baer Group
Banque Cantonale Vaudoise
EFG International
Basler Kantonalbank
Luzerner Kantonalbank
Galler Kantonalbank

Let’s look at each one of them in detail (source: relbanks.com)

#1. UBS Group:

It was established in the year 1862, around 155 years ago. Its head-quarter is situated in Bahnhofstrasse 45, Zurich. At the end of 2016, it had the total assets of CHF 935 billion. Around 59,387 people work here. It is a public company and it had merged with PaineWebber in the year 2000. At the end of 2016, the operating income of UBS was CHF 28.320 billion. It had total equity of CHF 53.621 billion at the end of 2016.

#2. Credit Suisse:

It was founded in the year 1856, around 161 years ago. Its head-quarter is located in Zurich. At the end of 2015, it had the total assets of CHF 820.80 billion. Around 48,200 people work here. The focus of Credit Suisse is on investment banking, asset management, and private banking. At the end of 2015, the operating income of Credit Suisse was CHF 2.42 billion. It had total equity of CHF 44.38 billion at the end of 2015.

#3. Raiffeisen Switzerland:

This bank is the third top banks in Switzerland after UBS and Credit Suisse. This is a co-operative bank. It has been serving around 3.7 million customers, out of which 1.9 million are co-operative members or co-owners of Raiffeisen. The group has more than 1004 branches in Switzerland. And it has around 292 banks that are co-operatively structured. This co-operative bank is also one of the members of the International Raiffeisen Union (IRU).

#4. Zurich Cantonal Bank:

It was established in the year 1870, around 147 years ago. Its head-quarter is situated in Bahnhofstrasse 9, Zurich. At the end of 2014, it had the total assets of CHF 156.50 billion. Around 4825 people work here. The focus of this bank is to provide services like commercial banking, retail banking, private equity services, investment management, and investment banking. At the end of 2014, the operating income of this bank was CHF 1935.22 million. It had the net income of CHF 647.50 million in the same year.

#5. Julius Baer Group:

It was founded in the year 1890, around 127 years ago. Its head-quarter is located in Zurich. At the end of 2013, it had the total assets of CHF 72.522 billion. Around 5390 employees are employed here. The focus of Julius Baer Group is on wealth management and private banking. At the end of 2013, the revenue of this bank was CHF 2.195 billion. It had total equity of CHF 5.039 billion in the same year.

#6. Banque Cantonale Vaudoise:

It was established in the year 1845, around 172 years ago. Its head-quarter is located in Lausanne. At the end of 2014, it had the total assets of CHF 41287.66 million. Around 1946 people are employed in the bank. The specialty of this bank is that this bank is part of 24 cantonal banks that are serving 26 cantons of Switzerland. It has a branch in Guernsey. It doesn’t have any state guarantee for its liabilities.

#7. EFG International:

It was founded in the year 1995, around 22 years ago. It is quite a new bank compared to other banks in Switzerland. Its head-quarter is situated in Zurich. At the end of 2016, it had the total assets of CHF 42.319 billion. Around 3752 people work here. Its main focus is on private banking. At the end of 2016, the operating income of this bank was CHF 722 million. It had total equity of CHF 2.257 billion in the same year.

#8. Basler Kantonalbank:

This bank was established in the year 1899, around 118 years ago. It has over 49 branches across Switzerland. At the end of 2016, it had the total assets of CHF 22333.80 million. Around 788 people are employed in the bank. The specialty of this bank is that this bank is part of 24 cantonal banks that are serving 26 cantons of Switzerland. It has a full state guarantee of state liabilities. It had the operating income of CHF 146.3 million at the end of the year 2016.

#9. Luzerner Kantonalbank:

This is one of the most significant cantonal banks in Switzerland. Luzerner Kantonalbank has a market share of 50-60%. It was established in the year 1850, around 167 years ago. Its head-quarter is located in Luzern. At the end of 2014, it had the total assets of CHF 29381.43 million. Around 948 employees are employed in the bank. It had the operating income of CHF 451.61 million at the end of the year 2014.

#10. Galler Kantonalbank:

This bank in Switzerland was founded in the year 1868, around 149 years ago. It is a joint-stock company. At the end of the year 2016, it had total assets of CHF 32.2 billion. Around 1227 employees have been employed here. This is a universal bank. And its main focus is on private banking, corporate finance, real estate financing, and standardized banking services. This bank is the sixth largest cantonal bank in Switzerland.