“Their business model may seem boring, but it is characterized by its security, reliability and clarity,” says Director of the Union of Swiss Cantonal Banks Hanspeter Hess.
The Swiss cantonal banks recorded an improvement in their results in 2022, in particular thanks to the rise in interest rates. The 24 establishments also support the realization of “an analysis” following the events linked to Credit Suisse.
“The cantonal banks are reliable constants in our financial centre. For some, their business model may seem boring, but it is characterized by its security, reliability and clarity, “said Hanspeter Hess, director of the Union of Swiss Cantonal Banks, quoted in a press release.
During the period under review, the cumulative net profit amounted to 3.6 billion francs, an increase of 7.8%. Operating profit for its part took 4.8% to 4.3 billion francs.
“Associated with the growth in customer loans, the increase in interest rates positively influenced the results,” explains the UBCS.
Operating profit for its part rose by 4.3% to 10.091 billion francs. Net income from interest operations, the main source of income for cantonal banks, jumped 6.6% to 6.13 billion.
Last year, the 24 banks thus increased their business volumes: the cumulative balance sheet stood at 782.4 billion at 31 December, a plus of 4.5% over one year. Customer loans increased by 4.8% to CHF 514.7 billion. Of this volume, loans covered by mortgages represent 458.7 billion francs (+5.0%).
Customer funds, which represent deposits and cash bonds, grew by 4.5% to 461.7 billion.
In 2022, the 24 establishments brought in more than 1.8 billion francs to the cantons and municipalities, in the form of profit distributions, compensation for equity, dividends, remuneration for the State guarantee and taxes.
About the debacle of Credit Suisse and its forced takeover by UBS, “the cantonal banks support the realization of an analysis of the events required by the Parliament at the time of its extraordinary session which took place this week. The important thing is that any new regulatory and legal measures contribute to the development of a targeted solution to deal with a major problem, which has been identified”, indicates the umbrella organization.