ZURICH — The Swiss National Bank (SNB) warned on Thursday that the economic and financial outlook remains highly uncertain, mainly due to ongoing trade and geopolitical tensions. However, it highlighted an improvement in profitability for Swiss banks in 2024, led by UBS.
In its 2025 Financial Stability Report, the SNB said several risk factors could worsen the impact of negative shocks on the global economy and financial markets. These risks include public debt levels that have risen to near historic highs worldwide, as well as stretched valuations in global residential real estate, corporate bonds, and the U.S. stock market.
The SNB incorporates these risks into its stress tests by assuming severe but possible adverse scenarios. The report also noted that the profitability of the Swiss banking sector improved compared to the previous year, driven mainly by UBS.
Capital ratios remained generally stable, and banks maintained strong capital buffers that provide significant capacity to absorb losses and extend credit. Additionally, banks held large liquidity reserves, further strengthening their resilience against potential shocks.
