Clarity on Performance of Swiss Private Banks - Success and failure in the 'new normal'

The new normal of Swiss private banking is relatively low NNM, persistently high earnings per FTE and falling revenue margins and profitability. Who will succeed in this new normal will depend on their ability to manage down personnel costs while attracting new business in an environment of stable AuM performance. Large banks appear to be winning the battle, gaining market share and enjoying
highest returns on equity (RoE). This will help drive consolidation in the market, which is already gathering pace due to market pressures and resolution of the US tax program.
Providing a potential stream of asset deal targets is a group of banks that are a considerable way from success – those that have managed to stabilize their decline or those in continuing decline. The signs point to a more dramatic fall in the number of market participants over the coming years and an even greater concentration of business at larger banks.