Takeovers in the Swiss private banking space is mainly hitting smaller banks, according to a report by PwC.

Owing to the consolidation, the number of Swiss private banks is expected to fall to 100 from 130 in the coming years.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

However, the study found an “overall decline” in consolidation activity in the country’s private banking industry.

PwC said: “A look at revenues and operating costs shows that gross profits have fallen by more than 30% since the recordbreaking year of 2007, especially at small wealth management banks.

“There are several reasons for this. Clients’ expectations in terms of tailored services, individual and comprehensive advice, and greater transparency have risen. At the same time, regulatory requirements have become stricter and more complex.

“This led to many, particularly smaller Swiss wealth management banks being taken over.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

More acquisitions in the sector are said to be in the form of asset deals.

The study also revealed that M&A activity in Swiss private banking is driven by local established banks.

“The majority of Swiss buyers are established banks seeking to make better use of their platform in Switzerland and to achieve cost synergies as a result of the takeover,” PwC said.

On the contrary, foreign investors’ interest in the sector is found to be on the wane after the tax dispute.

The key reasons for this decreasing interest are regulatory constraints and high acquisition prices for Swiss private banks.

Due to the tax dispute, foreign groups were also found increasingly selling their Swiss private banking businesses.

However, after the introduction of rules including AEOI, the frequency of such divestitures has dropped, PwC noted.