Foreign Banks – in Graphs
August 2015
Foreign Banks in Graphs
Foreign Banks – largest banking group
118 banks – or 42%
of all banks in
Switzerland – are
foreign owned banks.
foreign-owned
banks
Number of Banks 1997 - 2014
260
240
220
200
180
160
140
120
0
100
Swiss controlled Banks
Source: SNB
Foreign controlled Banks
Foreign-controlled
August 2015
2/19
Foreign Banks in Graphs
Foreign Banks – important employer
17% of bank
employees in
Switzerland work in a
foreign banks.
banks
Domestic Employment 1997 - 2014
24000
22000
20000
18000
16000
14000
12000
Source: SNB
August 2015
3/19
Foreign Banks in Graphs
120000
600
100000
500
80000
400
60000
300
40000
200
20000
100
Numb
ber of banks
Emplo
oyees
Employment and Number of Banks
0
0
2005
06
07
08
Foreign Banks
Big Banks
Private Bankers and Wealth Management Banks
Number of Foreign Banks
Source: SNB
Slightly decreasing
number of employees
– but the foreign
banks remain an
important employer.
09
10
11
12
13
14
Cantonal Banks
Regional-, Raiffeisen and Other Banks
Number of Banks
August 2015
4/19
Foreign Banks in Graphs
Foreign Banks – add value to Swiss GDP
Foreign banks
contribute 17% of
gross value added to
the Swiss banking
sector's GDP. The
foreign bank's share
in the Swiss GDP is
1 1% – comparable
1.1%
to the one of the
gastronomy sector.
Gross value added 1997 - 2014
30%
20%
10%
0%
Source: SNB
August 2015
5/19
Foreign Banks in Graphs
Cost-Income Ratio – increases after the crisis
Continuous increase
in the cost-income
ratio of the wealth
management
business.
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40 0%
40.0%
2005
06
07
08
Cantonal Banks
Regional-, Raiffeisen and Other Banks
Foreign Banks
Source: SNB
09
10
11
12
13
14
Large Banks
Private Bankers; Wealth Management Banks
August 2015
6/19
Foreign Banks in Graphs
Size and focus – small entities remain important
Many foreign banks
are sucessful by
focusing on specific
market segments.
segments
Size is not the only
criterion for success.
Size distribution 2014
2'500
Employees
2'000
1'500
1'000
500
0
1
7
13
19
25
31
37
43
49
55
61
67
73
79
85
91
97 103 109 115
Number of banks
Source: SNB
August 2015
7/19
Foreign Banks in Graphs
Global Presence – with strong European roots
European banks are
dominant – noneuropean banks'
presence only slowly
increases.
12
12
Europe
Asia
USA / Canada
16
Others
78
Source: AFBS
August 2015
8/19
Foreign Banks in Graphs
Employment and size 2014
Size of banking institute
(Employment)
80% of employees
work in banks with
more than 200
employees
employees.
4%
15%
59%
<50
22%
50‐200 200‐1000
>1000
Source: AFBS
August 2015
9/19
Foreign Banks in Graphs
Value Added and Size 2014
Personnel expenses
are the largest expense for banks – this
confirms that foreign
banks' business in
Switzerland is
peoples' business.
4000
48%
3500
In M
Mia CHF
3000
2500
27%
2000
20%
1500
1000
5%
500
0
<50
50‐200
Personnel expenses 200‐1000
Taxes
Earnings
>1000
Write‐offs
Size
Si off banking
b ki institute
i tit t (Employment)
(E l
t)
Source: AFBS
August 2015
10/19
Foreign Banks in Graphs
Cost-Income Ratio and Size 2014
No clear correlation
between size and
cost-income-ratio.
100%
80%
60%
40%
<50
50‐200
200‐1000
>1000
Total
Size of banking institute (Employment)
Source: AFBS
August 2015
11/19
Foreign Banks in Graphs
Profitability of Client Assets 2014
Small banks are more
profitable.
0.75%
0.71%
0.70%
0.65%
0.63%
0.60%
0.58%
0.55%
0.50%
0.45%
0 44%
0.44%
10‐35 Mia
>35 Mia
0.45%
0.40%
<2.5 Mia
2,5‐10 Mia
Total
Size of banking institute (AuM)
Source: AFBS
August 2015
12/19
Foreign Banks in Graphs
Activities – Private Banking, but not only
90
Private Banking still
and funds business
are the most
important activities of
foreign banks.
79
80
71
70
55
60
50
40
32
30
19
20
10
0
Private Banking
Fund Distribution
Trade Finance
Source: AFBS
Capital Market
Retail Banking
August 2015
13/19
Foreign Banks in Graphs
Assets under Management
Foreign banks are the
most important
banking group in
Switzerland for the
international private
wealth management
(share of 20%).
Assets under Management 2006 - 2014
1200
1000
Billion CHFF
800
600
400
200
0
Source: AFBS
August 2015
14/19
Foreign Banks in Graphs
Asset Management and Size of Bank 2014
Size of banking institute (AuM)
The large banks
manage more than
two thirds of the
assets managed by
all foreign banks.
4%
12%
14%
70%
<2.5 Mia
2,5‐10 Mia
10‐35 Mia
>35 Mia
Source: AFBS
August 2015
15/19
Foreign Banks in Graphs
Foreign Funds Are Important
Two thirds of all fonds
distributed in
Switzerland are
produced by foreign
promoters – and
generally domiciled
abroad.
6000
5000
Number of F
Funds
4000
3000
2000
1000
0
Foreign promoter, foreign domicile
Foreign promoter, Swiss domicile
S i promoter,
Swiss
t fforeign
i d
domicile
i il
S i promoter,
Swiss
t S
Swiss
i d
domicile
i il
Source: AFBS upon FINMA data
August 2015
16/19
Foreign Banks in Graphs
Foreign Banks in Switzerland - Summary
118 banks – or 42% of all banks in Switzerland
Foreign banks generate 1,1% of value added of Swiss GDP
17% of bank employement – most important bank group
Private banking is main activity – appr. CHF 1,020 Bio assets under
management
g
t
 Safety first: confidentiality and security in a tax transparent world
 Strong integration in Europe
Europe, non
non-european
european banks
banks' presence increasing
only slowly




August 2015
17/19
August 2015
18/19
Foreign Banks in Graphs
The Secretariat – Your Contact
Association of Foreign Banks in Switzerland
Usteristrasse 23, 8001 Zurich
 +41 44 224 4070
 +41 44 221 0029
 [email protected]
www foreignbanks ch
www.foreignbanks.ch
Foreign Banks in Graphs
Sources
 Swiss National Bank SNB
- Banks in Switzerland 2014: www.snb.ch \ Publications
 Association of Foreign Banks in Switzerland AFBS
- Economic Figures 2014: www.foreignbanks.ch \ Publications
based upo
upon a voluntary
o u ta y a
annual
ua su
survey
ey aamong
o g foreign
o e g ba
bankss in S
Switzerland
t e a d
- Fund data compiled by the AFBS upon FINMA data
August 2015
19/19