Banks should objectively assess their situations and be realistic about their chances of survival. Senior management needs to look closely at what can be done to turn around the bank’s fortunes – including changes to the business or even M&A. Shareholders meanwhile must hold management to account in implementing the necessary strategies as well as considering their own best options, which may be an exit.
Despite setting out the challenges in this article, we are optimistic about the future of the Swiss private banking industry. There are cold, hard facts that need addressing, but Switzerland has a number of advantages that can help its banks regain ground globally. These include its economic stability, reputation for service quality, and a broad service offering. But banks will succeed only when genuine improvements are made to underlying profitability and performance, however. Otherwise, the decline will continue until rescue is beyond reach.
Discover further results on the performance of Swiss private banks in our study:
Clarity on Performance of Swiss Private Banks