Figures from the Swiss National Bank show that the number of banks in the country are declining and that not all are able to break even.

Official data underscores the fact that the number of banks in Switzerland continues to shrink, with some of them not managing to make a profit in a tough business climate.

According to the Swiss National Bank, 226 of the 261 banks in the Alpine state logged a profit, aggregating at SFr11.8 billion ($12.3 billion), while the remaining 35 institutions posted a total loss of SFr3.9 billion. The figures mean there were five fewer banks in 2016 than a year before, while total employees fell to 120,843 from 123,890 a year before.

When profit and loss figures are netted out, there was an overall profit across all banks of SFr7.9 billion last year, about half as much as the year before but the SNB stressed that in 2015, the country’s largest banks made “especially high extraordinary income of SFr10.7 billion”.

As Swiss bank secrecy has faded and the country’s lenders have seen margins squeezed by negative interest rates, consolidation and changes to booking centres have hit the total number of banks in the country over recent years. In 2012, for example, there were 297 banks. As recently as 2007, there were more than 330 banks, highlighting the relentless downward trend since before the global financial crisis. 

Recently, one of the top private banking figures in the country, Michel Longhini at Geneva-based Union Bancaire Privée, set out his view in this publication on how and why Swiss banks must adapt. 

Media reports cited SNB data showing, meanwhile, that some offshore sources of funds have fallen sharply. Indian funds in Swiss banks dropped to SFr377 million ($393 million) in 2016, the lowest in 20 years.