Record results for Swiss banks

Ernest and Young consulting firm EY Swiss banks financial sector operational result barometer fiscal year 2023

(10.04.2024) The Swiss financial sector successfully surmounted the economic challenges of 2023. According to the bank barometer from consulting firm Ernst and Young (EY), an overwhelming 96% of banks anticipate operational profit growth in 2024.

This record level is 18 points higher than that of 2022 (78%). Banking institutions are showing increasing confidence in the resilience of SMEs, with only 42% expecting a decrease in their solvency, compared to 59% in 2022. The real estate sector also saw a positive shift, with less than a quarter (22%) of banks forecasting a rise in value adjustments for residential properties, down from 31% the previous year.

However, the EY report also signals that the sector is gearing up for a tighter regulatory framework, in the aftermath of Credit Suisse’s collapse. Nearly two-thirds (62%) of respondents anticipate more stringent liquidity requirements, while 40% foresee an increase in capital regulation. The majority of the banks surveyed (67%) expect surveillance activities of the Financial Market Supervisory Authority (FINMA) to increase.

Artificial intelligence (AI) is also of interest to Swiss banks. Nearly 82% of them express interest in it, and 32% have already initiated pilot projects or initial applications. However, only 6% already have a fully operational AI application.

The study also indicates that 37% of Swiss banking institutions already apply environmental, social, and governance (ESG) criteria before granting a loan to an institution. And more than a third (35%) planning to incorporate these principles moving forward.


Last modification 10.04.2024

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