Banks cut 4.1% of Switzerland jobs in first half as profit falls
1 September 2016 15:44

Banks cut 4.1% of Switzerland jobs in first half as profit falls

NEW YORK. KAZINFORM Banks in Switzerland reduced their domestic workforce by 4.1 percent in the first half as companies combined and made cost cuts to stem declining profitability, a survey by the nation's main bank association showed.

The loss totals 3,454 jobs, the Swiss Bankers Association said in its annual industry report on Thursday. The number of workers fell by 1 percent to 103,041 in 2015.

“The continued low interest rate environment and strong competition are leading to significant pressure on margins, ” the SBA said in the report. “This pressure is further compounded by increasing costs.”

The first half was marked by economic and geopolitical uncertainties and market volatility that weighed on investor sentiment, the SBA said. Trading volume decreased 8.7 percent during the period.

Switzerland is home to UBS Group AG and Credit Suisse Group AG, as well as thousands of smaller private banks and wealth managers, many of which focus on overseeing the assets of rich families living outside the country. The Swiss have the largest share of the cross-border wealth-management market, according to the report, although foreign-controlled banks are quitting the country on concerns about profitability, regulatory costs and legal risks.

Read more at Bloomberg