What has long been rumored – and what became clear after reviewing the 2024 annual reports – is now confirmed by the Swiss Bankers Association’s (SBA) Banking Barometer: the increasingly challenging interest-rate environment weighed on banks’ operating results. The Banking Barometer, which annually summarizes the key figures and developments of the Swiss financial center, is based on data from the Swiss National Bank and surveys of SBA member institutions.

According to the press release published on Thursday, the aggregated operating result of all banks fell by 3,5 percent year-on-year in 2024 to 69,8 billion francs. Despite rising mortgage volumes, interest margins came under heavy pressure in a low-interest environment. This was due, on the one hand, to the low yields on mortgages and bank loans and, on the other, to rising refinancing costs for the banks.

Strong Growth in Assets Under Management

Commission and fee business recorded a slight increase, while assets under management in Switzerland rose sharply by 10,6 percent to 9,284 billion francs. Of this, 4,225.3 billion francs came from foreign-domiciled clients and 5,058.7 billion francs from domestic clients. In the cross-border wealth management segment for private clients, assets under management reached 2,427 billion francs – an increase of 10 percent. This confirms Switzerland’s continued status as the global number one in this discipline, a fact the SBA highlighted with a certain satisfaction.

The volatile stock market year boosted trading activities, with trading income rising 38,4 percent compared to 2023.

Employment Prospects at a 10-Year High

The 230 banks operating in Switzerland reported stable employment in 2024 with slight growth. Out of around 159'500 people working in banking services, 94'347 full-time equivalents were employed directly at banks by the end of 2024 – an increase of 1'048 positions (+1,1 percent) compared to the previous year.

In the first half of 2025, the SBA survey showed a 1,7 percent decline in staff numbers at banks, but this was entirely abroad. Employment levels in Switzerland remained stable. Overall, the outlook is marked by (surprisingly strong) confidence: 96 percent of SBA member institutions expect stable or rising employment – the highest level in ten years.

Low Interest Rates Fuel Mortgage Growth

The outlook remains positive for key business areas, according to the Swiss Banking Outlook, also published by the SBA and released semi-annually.

Chief economists and chief investment officers at SBA member institutions expect credit growth to remain above or close to the average of the past five years. For mortgage lending, 44 percent of respondents anticipate higher growth, driven in particular by low interest rates.

Cross-border wealth management is also expected to continue growing moderately in 2025, fueled by «geopolitically motivated capital inflows into Switzerland as a secure and stable wealth management hub.»