Cantonal Banks

Figure: Evolution of the average performance of the cantonal banks

The performances measures of the Swiss cantonal banks are established by the Center for Risk Management - Lausanne, according to a methodology developed by Eric Jondeau and Ludovic Mojonnet from HEC Lausanne. The approach is based on 14 indicators, which reflect the Profitability, Efficiency, Growth, Liquidity, Capital adequacy, and the Asset quality of the banks. The ratios have been converted into grades from 2 to 6, with increments of 0.5. For each of the 14 ratios, the grades of the 240 observations (24 banks over a 10 years period) are symmetrically distributed around a mean equal to 4. For further details, please refer to the "Methodology" section.

The table presents the performances of all the cantonal banks in 2014 for the various indicators. It also presents the evolution over time of the overall performance of all the cantonal banks. Columns can be sorted by clicking on column headers. More details on individual banks can be obtained by clicking on the name of the bank.

Table: Performances of cantonal banks

Profitability Efficiency
(1) Return on equity (ROE) (4) Employee expenses per employee (EEE)
(2) Ordinary profit margin (OPM) (5) Gross profit per employee (GPE)
(3) Noninterest expenses to revenues (NIE)    (6) Return on loans (ROL)
Growth Liquidity
(7) Assets growth (AG) (10) Loans to assets (LTA)
(8) Revenues growth (RG) (11) Cash assets ratio (CAR)
(9) Loans growth (LG)  
Capital adequacy Asset quality
(12) Deposits to equity (DTE) (14) Impaired loans ratio (ILR)
(13) Financial leverage (FL)  

Disclaimer 1: The implementation of our model follows best practices. However, it cannot be assured that the data used is correct. Our measures should be considered as indications only. It is important to note that cantonal banks are subject to different framework conditions: in particular, there may be important differences in the cost of living from one canton to another. The business models adopted by the cantonal banks are also different, which has an impact on their costs and performances. Finally, the competitive situations may differ from one region to another. These differences can affect the rankings.