Wealth management in Switzerland and Liechtenstein 2025
Year: 2025
Type: article
Abstract: The Swiss and Liechtenstein wealth management industries remain significant, with 69 banks managing a combined CHF 8.7 trillion in AUM. This represents a 9% increase versus the prior year, primarily driven by Private Banks with more than CHF 20 billion in AUM (+14%) and smaller banks below CHF 20 billion in AUM (+14%). UBS dominates the market, managing USD 5.6 trillion globally (66% of total AUM). Combined inflows (NNM) were CHF 120 billion, a 14% decline from the CHF 138 billion recorded in the previous year. While UBS attracted USD 52 billion of inflows, its NNM was markedly lower year-on-year (–35%). In contrast, smaller banks achieved strong growth with CHF 7 billion in NNM (+954%), showcasing their ability to capture new client assets. Geographically, the industry remains concentrated around Zurich and Geneva, together hosting nearly 70% of wealth management banks and accounting for over 87% of Swiss AUM, with Zurich strongly skewed by UBS. Nevertheless, regional hubs such as Lugano and Basel continue to provide diversity and competitive dynamics. Both Liechtenstein banks featured in this study are headquartered in Vaduz. Performance across our four scoring dimensions shows mixed results. Growth dynamics were robust, particularly for smaller banks, while profitability levels (Returns on AUM, Total Assets, and Equity) came under pressure. Efficiency ratios improved slightly, as median cost-income ratios fell below 77% (2024: 78%), yet rising personnel expenses per FTE suggest ongoing cost pressures. Capital adequacy remains strong across the industry, with CET1 Ratios, Leverage Ratios, and Liquidity Coverage Ratios far above Basel III minimum requirements. The 2025 rankings highlight standout performers: Goldman Sachs was recognized as the Best Private Bank above CHF 20b AUM, while Banca del Ceresio secured the top position among banks below CHF 20b AUM. Strong growth was recorded by Goldman Sachs in the larger bank category, and by Banca Credinvest among the smaller banks. Mirabaud distinguished itself as the most prosperous larger institution, while Scobag ranked as both the most efficient and best capitalized. Among smaller banks, MBaer was awarded for prosperity, BZ Bank for efficiency, while BG Private Bank stood out for capitalization strength. Finally, governance continues to be an important theme. Board structures remain diverse, with substantial variance in size and composition (as well as professional backgrounds, which would need to be further investigated). Gender diversity remains an area of interest, with over one-third of wealth management banks having no female representation on their boards.
Authors: Künzle, Christoph, Bachmann, Claude, Feldmann, Sarina
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7124412226
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