Switzerland’s private banks are emerging from a dark period in their history. The weight of regulatory change over the past ten years has proved too big a burden for some. And structural change in the industry has caused others to go out of business or be absorbed by competitors.
Geopolitical volatility, renationalization trends, fundamental demographic shifts and rising rates of cyber attacks are the biggest business risks faced by business leaders around the globe. All in all, the 1,300 corporate leaders surveyed by KPMG as part of this year’s CEO Outlook seem to be realistic and accordingly pragmatic.
Analyzing the performances of 85 of Switzerland’s 114 private banks produces a bleak picture. Almost every key performance indicator (KPI) deteriorated in 2016 – sometimes significantly. The vast majority of banks have not taken the action needed to reverse their decline.