🏦 Financial health of major Swiss banks: UBS, PostFinance, Raiffeisen and the cantonal banks

The stability of the Swiss banking system rests on a delicate balance between private banks, cantonal banks, and public institutions. As the global economy experiences turbulence, it is essential to assess the financial soundness of these key players in the Swiss banking sector.

🔴 UBS: Between regulatory challenges and post-Credit Suisse opportunities

📊 Financial Performance

In 2023, UBS achieved a net profit of $7.6 billion, up from the previous year. This performance is partly attributable to the acquisition of Credit Suisse, which strengthened its market position.

⚠️ Regulatory challenges

However, UBS faces major regulatory challenges. The Swiss government is proposing strict banking reforms, requiring UBS to increase its capital by $26 billion to reach a capital ratio of 15 to 17 (%). UBS considers these requirements excessive and is considering relocating its headquarters abroad if these regulations are implemented. It's certainly not in the country's interest to see this banking giant relocate elsewhere… A solution that satisfies both parties will surely be found!

🟡 PostFinance: Stability in a challenging economic environment

📈 Financial Results

In 2023, PostFinance recorded a profit of 254 million Swiss francs, despite high inflation and declining consumer confidence. This performance was due to rising interest rates, which improved interest income.
Postfinance's result: PostFinance

🟢 Future prospects

PostFinance continues to focus on developing digital services and improving the customer experience to maintain its competitiveness in the Swiss market.

🟢 Raiffeisen: strength and continuous growth

📊 Financial Performance

Raiffeisen had an exceptional year in 2024, posting a profit of CHF 1.2 billion, its second-best result in its 125-year history. This performance is attributed to prudent management and a loyal client base. https://www.raiffeisen.ch/rch/de/ueber-uns/raiffeisen-group-for-investors/financial-information.html

🏦 Market positioning

Raiffeisen stands out for its cooperative model, offering local banking services while maintaining a solid capital base.

🟣 Cantonal banks: regional stability

📈 Financial Performance

The 24 Swiss cantonal banks reported solid financial results for 2023, with asset growth and stable profitability. Some banks achieved record figures, which is very encouraging for the financial health of their respective cantons.

🏛️ Role in the local economy

These banks play a crucial role in financing regional projects, supporting the local economy and offering services tailored to the specific needs of each canton.

📌 Overall, a rather positive outcome

The financial health of Switzerland's major banks remains robust, despite economic and regulatory challenges. UBS continues to navigate a complex post-Credit Suisse environment, while PostFinance, Raiffeisen, and the cantonal banks maintain their stability through prudent strategies and strong local roots.