The time is in the mid-term financial assessment for the Romanian Swiss cantonal banks. Since the beginning of the year, market volatility as well as the diversification of challenges have not failed to animate the sector. The results are generally awaited stable.
It is up to the Cantonal Bank of Jura (BCJ) to open the ball of the half -yearly results of cantonal financial institutions on Thursday, followed by that of Friborg the following week. For these two establishments, “a slowdown in the economic situation and a probable downward development of interest rates” was expected for 2025 when presenting their results 2024.
On a wider scale, “the successive decreases of the key rate by the Swiss National Bank (SNB) in 2024, and those still expected this spring, will affect the result of interest 2025”, warned the director general of the BCF Daniel Wenger as an interview with the AWP agency. “However, the beneficiary perspectives remain intact and financial solidity will be further improved,” he said. Since then, the BNS has lowered your key rate to 0.25% in March and then 0.00% in June.
For the Chamber of Commerce and Industry of the Canton of Friborg (CCIF), which oversees more than 1250 companies, “the best current way to maintain cantonal economic resilience is to intensify diversification”.
In general, “to deal with market volatility, we must not give in to panic during sudden movements, reduce exposure to the American market and return to European companies with potential, especially in the defense -related sectors, directly or indirectly, because enormous investments will be essential,” explains the deputy director of CCIF Philippe Gumy.
Regarding cybermenace, “it is extremely important to increase investments. The risks are too often underestimated, in the opinion of our member companies active in IT”.
Finally, the creation of new regulations, described as “big challenge” reaches limits because they are expensive and the effects that are not very noticeable, according to Mr. Gumy. “Switzerland should not regulate more than other countries. This applies to finance with compliance or management of the ‘Too Big to Fail’ program (TBTF).”
With the exception of the BCGE, the BCBE and the BCV, the other cantonal banks have an explicit guarantee of the Confederation in the event of bankruptcy. “She has no reason to be,” notes expert Lukas Schmid for the Liberal Reflection Group Future Switzerland who estimates the potential for saving at 585 million francs per year.
Low copy rendered in 2024
Last year, the 24 cantonal banks that Switzerland has overall saw their activity causing treading, according to the Union of Swiss cantonal banks (UBCS).
For their entirety, income from interest activities fell from 3.4% to 7.3 billion such as those in trading and value operations to 1.1 billion (-4.9%), while the commissions brought in 3 billion, or 8.5% more over one year.
In terms of operating products, the cantonal trend stabilized at 11.7 billion (-0.6%). The personnel loads (+4.3%) and operating (+4.6%) were heavier. In the end, net profit reduced from 2.8% to 4.2 billion. Last point, mortgage activity was reinforced from 4.9% to 502.6 billion and customer assets from 4.1% to 476.4 billion.
For 2025, the Swiss banking system, encompassing cantonal banks and around twenty establishments like UBS, should “continue to benefit from solid economic conditions and the drop in guiding rates”, according to Moody’s analysts. The rating agency has retained its perspective at “Stable”.
This article was published automatically. Sources: ATS / AWP