The Top Five Swiss Banks
Switzerland has a long tradition of stable, secret banks that protect and grow wealth. The country has produced some behemoths that have key roles in global commerce. They also have institutions that cater to the wealthy and are able to protect those clients' privacy due to Switzerland's unique secrecy laws. The five largest Swiss banks, by assets under management, are all worthy of closer consideration.
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UBS
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UBS, or United Bank of Switzerland, is the largest Swiss bank and has a major global presence. In 2010, it was the tenth largest bank in the world, with $1.8 trillion dollars of assets under management. It had offices in 50 countries and over 64,000 employees. The company is known for its private wealth management but also has significant investment banking operations.
Credit Suisse
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Credit Suisse is another major bank in Switzerland, with $1.1 trillion of assets under management in 2010. The company had over 50,000 employees worldwide in 2011 and was led by American CEO Brady Dougan. In contrast to UBS, Credit Suisse is viewed as more of an investment bank, providing advice to corporations on mergers and acquisitions and debt and equity offerings. The company also has a significant sales and trading operation to power its revenue and profit.
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Cantonal Bank
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The Cantonal Bank has 24 subdivisions for each canton, or state, in the country. Each bank is primarily owned by the canton where it is located. In total, the banks had about $400 billion in assets under management in 2010. These banks are primarily retail-oriented for the common Swiss citizen. The banks are focused on being stable, secure deposit institutions. They typically do not engage in risky lending and do not extend their product lines or expand internationally.
Pictet and Cie
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Pictet is Switzerland's largest bank catering to high-end clientèle and focused completely on asset management. The company does not engage in any investment, retail or commercial banking. Instead, the firm focuses on placing its clients assets in hedge funds, private equity and other investment vehicles. Overall the company managed about $380 billion in 2010. Unlike most banks, which are corporations, it is a partnership owned by eight individuals. The company does not risk its own capital on trading or investment, focusing on helping clients build their portfolios.
Bank Julius Baer
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Bank Julius Baer is another private bank focused on wealthy clientèle. The firm focuses on Europe and Asia, with offices in 20 countries and over 3,500 employees in 2011. Like Pictet, Julius Baer focuses on managing money for clients and not on risking its own capital. Founded in 1890, the company had about $183 billion assets under management by the end of 2010.
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References
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