a. The Net Income
The banks registered a slight decrease in the aggregated net income. There was a 0.1% decrease in the 2017 analysis, which recorded a CHF62.5 billion operating net income. Interest-earning businesses had a slightly more significant reduction in their balance sheet income. As a result, a 0.6% decrease was registered in the CHF 24.0 billion income.
The interest-earning business enormously contributed to the income share despite registering a decrease. On the other hand, service and commission businesses contributed CHF 21.7 billion to the aggregated income, a 4% increase. The trading business, on the other hand, registered the most significant increase of 25.4%.
The banks in Switzerland registered an aggregated profit of 9.8 billion, a 24% increase. This was a comparison between 2017 and 2016. In addition, taxes worth 2.2 billion were paid by the banks.
b. Balance sheet totals
Credit volume has risen over the past few years, and assets have undergone various market developments. The results of these two factors have been reflected in the aggregated balance sheet total of Swiss banks. As a result, Swiss banks witnessed a 4.8% in CHF 3,249.4 billion generated in 2017 compared to CHF 3,100.8 billion in the preceding year. The Swiss banks that recorded the most significant increase in balance sheet totals in decreasing order include:
I. Big banks with an increase of over CHF 100 billion.
II. Cantonal banks recorded an increase of over CHF 20 billion.
III. Raiffeisen Banks with an increase of over CHF 10 billion.
IV. Other banking institutions registered an increase of over CHF 3 billion.
V. Savings and regional banks did not fall far off with a CHF 2 billion increase.
VI. Foreign banks reached an increased balance sheet total of over CHF 1 billion.
VII. Private banks recorded the lowest increase with a little over CHF 0.3 billion increase.
c. Credit Volume
When the minimum exchange rate on the euro was lifted, and the negative interest rates were introduced, Swiss banks played a significant role in financing and lending Swiss bank accounts. Mortgage loans, for example, claim the lion's share in Swiss banks' credit volumes. As a result, a steady increase in mortgage loans registered a 31% increase, equivalent to CHF 309.6 billion.
d. Wealth Management
Switzerland claims more than a quarter of the global market share in cross-border asset management and private banking. It leads the world with a record of CHF 7291.8 billion in assets under its management. Institutional customers are the most significant contributors to the number of support under the control of Swiss banks. Private investors are the most critical contributors to assets under the management of Swiss banks. These clients are both domestic and foreign.
These assets are expected to grow steadily until 2021 with an annual rate of about 3 or 4%.
There was a significant decrease in the number of jobs created by banks from 2016 to 2017. The 93,554 people employed by banks in 2017 were 7,822 less than those in the previous year. The comparison between 2018 and 2017 also registers a decrease.
The regulatory requirements imposed on the banks created a need for structural realignment. However, most people within the banking sector think that the employment levels will register an increase.