B A N K E N K O M P A S S . C H
← All studies
cost_efficiencym_and_aprivate_bankingrisk_capitalwealth_management

Clarity on Swiss Private Banks

Niche or global? As the interest wave ends, it’s time to get the core business right

Published
2025
Relevance
35%
Issuer
KPMG AG
Length
38 pages
01 · Summary

Summary

The KPMG 'Clarity on Swiss Private Banks 2025' study analyzes the financial performance and strategic positioning of 71 Swiss private banks over recent years. While 2024 marked a record high for assets under management (AuM), largely fueled by favorable financial markets, the underlying operating environment is becoming more challenging. The high-interest-rate tailwinds that boosted net interest margins over the past two years are subsiding, forcing banks to rely more heavily on commission income. The report identifies two primary successful business models: large banks with a comprehensive global footprint and smaller, highly focused niche banks operating primarily in Switzerland. Many banks outside these models struggle to cover their cost of equity, with only 31% of the analyzed institutions achieving a return on equity (RoE) that exceeds their cost of equity. Consequently, industry consolidation is accelerating, driven by larger institutions optimizing their global presence and smaller banks seeking scale or exiting the market. Looking forward, private banks must rigorously manage costs and define clear strategic models to navigate an environment characterized by lower interest rates, geopolitical uncertainties, and a strong Swiss franc.

Open in Analytics
Interactive deep-dive with your peer data.
03 · Key findings

Key findings

1

Almost two-thirds of banks reported a worse cost-income ratio in 2024 compared to 2023.(p. 2)

2

Only 31% of Swiss private banks achieved a Return on Equity (RoE) exceeding their cost of equity in 2024.(p. 2)

3

The two most successful business models are either large global banks with comprehensive services or focused semi-local players.(p. 3)

4

Industry AuM reached a record high driven by a median growth of 13%, primarily due to positive market performance rather than Net New Money.(p. 3)

5

Consolidation is accelerating, and the number of Swiss private banks is expected to fall below 80 by the end of 2025.(p. 6)

6

Banks hold a significant level of excess capital, totaling CHF 22bn, and have distributed around 80% of net profits as dividends over the past five years.(p. 31)

04 · For your bank

What does it mean for you

  • 1
    Position
    Almost two-thirds of banks reported a worse cost-income ratio in 2024 compared to 2023.
  • 2
    Action
    Only 31% of Swiss private banks achieved a Return on Equity (RoE) exceeding their cost of equity in 2024.
  • 3
    Posture
    The two most successful business models are either large global banks with comprehensive services or focused semi-local players.
  • 4
    Opportunity
    Industry AuM reached a record high driven by a median growth of 13%, primarily due to positive market performance rather than Net New Money.
05 · The full study
Jump to
1 / 38
100%
Editorial — page 1
Key messages — page 2
Continued… — page 3
Chapter 01: Number of private banks falls as consolidation deals take hold — page 4
Continued… — page 5
Continued… — page 6
Continued… — page 7
Continued… — page 8
Chapter 02: The effects of diversification on Swiss private banks’ performances — page 9
Continued… — page 10
Continued… — page 11
Continued… — page 12
Continued… — page 13
Continued… — page 14
Chapter 03: Do Switzerland’s private banks create shareholder value? — page 15
Continued… — page 16
Continued… — page 17
Chapter 04: Operating profitability stays close to 2023’s historical high — page 18
Continued… — page 19
Continued… — page 20
Chapter 05: AuM driven by market performance — page 21
Continued… — page 22
Continued… — page 23
Continued… — page 24
Continued… — page 25
Chapter 06: Commissions offset lower interest income — page 26
Continued… — page 27
Continued… — page 28
Chapter 07: Cost increases slow down — page 29
Continued… — page 30
Chapter 08: Banks hold a significant level of excess capital — page 31
Continued… — page 32
Continued… — page 33
Appendix: Basis of preparation — page 34
Continued… — page 35
Continued… — page 36
Continued… — page 37
Continued… — page 38

On this page

01Summary02Open in Analytics03Key findings04What it means for you05Full study
Download
Banks covered
17
17 banks · Private · 2020–2024
Methodology
Period
2020 to 2024
Geography
Switzerland
Data Source
Annual financial statements of 71 Swiss private banks
Sample Size
71