2023-09-05 07:44:29
– Banks remain bullish despite Credit Suisse debacle
The branch should end the year with improved results and experience an economic upturn in 2024, according to the Swiss Bankers Association (SBA).
Posted today at 09:44
The banking sector experienced “generally solid” development in 2022.
MARTIN RUETSCHI/KEYSTONE
Swiss bankers expect to end the current year with improved results, thanks to the rise in interest rates. They anticipate a cyclical upturn in 2024, despite the paradigm shift represented by the collapse of Credit Suisse and its absorption by UBS.
The banking barometer published on Tuesday by the Swiss Bankers Association (SBA) shows a “generally solid” development of the activities of the branch in 2022, even if this shows considerable disparities depending on the segments.
In a context marked by a sharp decline in the stock markets and significant transfers of customer assets before the takeover of the bank with two sails by its counterpart with the three keys in March, the operating result of the entire sector fell by 0.9% to 70.3 billion francs. Consolidated annual profit meanwhile shrunk by 16.3% to 6.5 billion.
Due to the shift in interest rates by the Swiss National Bank (SNB) and the stock market decline, the financial center’s balance sheet total contracted by 6.9% to 3,339.7 billion and assets under management (AuM) by 11.2% to 7846.8 billion.
Boosted by the abandonment of negative rates by the SNB, interest transactions generated a result last year up 2.8% to 24.5 billion francs. With a share of 34.9%, they are the main contributor to the branch in Switzerland. Trading activities (+17.8%) benefited from the increased volatility of the markets, while “the sluggish stock market environment weighed on the result of commission operations and the provision of services”, reports the SBA .
The banking barometer includes for the first time a forward-looking view of several indicators for the branch, as well as economic prospects for 2024. Brushed up by 16 experts from member institutions, the Swiss Banking Outlook anticipates a economic growth of 1.5%, as well as an 80 basis point drop in inflation to 1.6%.
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