In 2020, the year of the coronavirus crisis, Swiss banks not only earned more, they also created a large number of jobs for the first time in many years, a survey shows.

The Swiss banking sector is enjoying «a solid trading environment», the Swiss Bankers Association said in its annual «Banking Barometer» published Tuesday.

The SBA said it was particularly gratifying that in the midst of a crisis, the banking industry was able to create jobs.

The number of employees rose slightly in 2020 for the first time in ten years, by as many as 414 full-time equivalents. In the first half of 2021, according to a survey by the SBA, the workforce at banks increased again by around 1 percent, with the growth in jobs abroad being stronger than at home.

No Signs of Change in Trend

However, the SBS warned against assuming this signaled a reversal in the downward trend in employment in the banking sector.

The jobs growth was strongly linked to the special role of banks in Switzerland's pandemic measures. In spring 2020, the government decided to grant coronavirus aid loans to companies and businesses via the existing network of banks.

 Over 17 billion francs in aid loans

The banks granted around 139,000 loans to the tune of 17.1 billion francs as part of the Swiss government’s coronavirus aid package, the SBA said.

Almost a quarter of the around 590,000 Swiss small and medium-sized enterprises took advantage of the scheme. The banks also benefited from the easing of capitalization rules because of the crisis and the Swiss National Bank’s negative interest rates.

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In the study, the SBA said Switzerland's 243 domestic banks has come through 2020 with flying colors in view of the unprecedented health crisis. For this year, the study points to a further recovery.

The banks’ aggregated net profit banks grew 5.8 percent on the year to 69.9 billion Swiss francs ($76.4 billion) in 2020 mainly due to a 46.7 percent increase trading profits. The total assets of all banks grew by 4.5 percent to 3.47 trillion francs at the end of 2020.

Despite the crash in March 2020 caused by the coronavirus pandemic, assets under management were maintained at around the same level as the previous year at 7.88 trillion francs. As a result, Switzerland remains the world market leader in cross-border asset management with a market share of 24 percent.