Identifying the Most Profitable Swiss Retail Banks

Despite a difficult environment, Swiss retails banks managed to further increase their average gross profit per employee last year. The differences across the field are significant.

In comparison to the previous year, the gross profit per employee in Swiss retail banks increased by 4,000 francs to 143,000 francs on average.

The figures are revealed in a new study by Zurich consultancy firm IFBC. This is the highest amount achieved since 2009, when profitability reached 150,000 francs per full-time-equivalent (FTE) employee.



Fribourg at the Top

The authors of the study analyzed the results of 52 Swiss retail banks. The profitability value is based on the operating profit, less the compensation of the state guarantee, divided by the number of FTEs.

The cantonal bank of Fribourg enjoys a clear lead, with an gross profit per employee of 394,000 francs. Second and third places areoccupied by Bank EEK and the Aargauische Cantonal Bank, with 307,000 and 294,000 respectively (see ranking).

1. Banque Cantonale de Fribourg 394,000 francs
2. Bank EEK 307,000 francs
3. Aargauische Kantonalbank 294,000 francs
4. Basellandschaftliche Kantonalbank 289,000 francs
5. Neue Aargauer Bank 271,000 francs
6. Luzerner Kantonalbank 257,000 francs
7. Appenzeller Kantonalbank 248,000 francs
8. Walliser Kantonalbank 245,000 francs
9. Zuger Kantonalbank 228,000 francs
10. Schaffhauser Kantonalbank 225,000 francs
A look at the top-10 listing reveals a high concentration of cantonal banks and large institutions with a balance sheet total of more than 20 billion francs, the authors comment. This can be traced back to a higher rate of activity of the banks in different business areas and to economies of scale, the report states.

Boost for Ticino Cantonal Bank

The largest leap in efficiency per employee was achieved the Banca dello Stato del Cantone Ticino. The Ticino cantonal bank increased value from 85,300 to 146,200 francs. The reason for this was much lower operating expenses coupled with higher earnings.

Untapped Potential

Apart from the size of the institutions, there are other key differences on display. The gross profit per employee at the Alternative Bank Schweiz was just 23,000 francs. That is 17 times less than Banque Cantonale de Fribourg. The values are similarly low at Banque CIC (Switzerland) at 43,000 francs.

«The broad span of key figures relating to individual income and costs indicate that untapped potential exists in some places,» the authors conclude.