Banks operating in Switzerland recorded solid results in 2021, despite an unstable environment. The consolidated result of the 239 banking establishments rose by 1.4% to 70.9 billion francs, the Swiss Bankers Association (SBA) said on Tuesday.
According to the umbrella organization, this increase is due to favorable stock market trends, in particular an improved result from commission operations and the provision of services (+10.9%). Interest transactions (+0.8%) followed the same upward trend, while trading transactions fell by 29.4%.
At the end of 2021, the combined balance sheet total of all banks in Switzerland stood at 3,587.8 billion, up 3.5% compared to the end of 2020. Mortgage loans represented the largest asset item important with 1134.9 billion, or 31.6%, indicates the SBA.
On the liability side, a further increase for commitments resulting from customer deposits with a share of 57.5%, thus constituting the first liability item in 2021, details the publication. Sight deposits and term deposits increased by around 10%.
Growing employment
In 2021, assets under management increased by 12.1% to 8,830.3 billion francs. This increase concerns the assets of Swiss customers as well as those of foreign customers, specifies the SBA. The Confederation remains the world leader in cross-border wealth management.
For the second consecutive year, employment in the banking sector increased slightly with 619 jobs created in 2021.
For 2022, the SBA highlights the uncertain geopolitical context, particularly on the issues of “breaks in supply chains, rising inflation rates, and a return to a more restrictive monetary policy”.
ats/ebz