Annual Report 2024
In the 2024 financial year, Zürcher Kantonalbank generated very pleasing consolidated profit before taxes totalling CHF 1,289 million. The canton and municipalities participate more than ever in the profit with CHF 562 million.
Key figures
CHF 3.088 billion
Operating income
CHF 1.289 billion
Consolidated profit before taxes
AAA
Aaa
Group rating
CHF 562 million
Participation canton and municipalities
CHF 184 million
Dividend for the canton
CHF 156 million
OECD minimum tax to the canton
CHF 21 million
Dividend to cover actual costs to canton
CHF 31 million
Compensation for state guarantee
CHF 170 million
Dividend for municipalities
6,607
Employees
6,607 people work in over 5,779 full-time positions. With 430 apprenticeships, we are one of the largest providers of vocational training in the Canton of Zurich.
CHF 140 million
Expenses
In 2024 we spent CHF 140 million for the public service mandate.
Return on equity (RoE)
Cost income ratio (CIR)
Risk-based TLAC Ratio
TLAC Leverage Ratio
Liquidity Coverage Ratio (LCR)
Net Stable Funding Ratio (NSFR)
Leader in the Greater Zurich Area
50%
Market penetration
Nearly half of the people of Zurich and of the companies domiciled in the Canton of Zurich are clients of Zürcher Kantonalbank.
51
Branches
We operate 51 branches and around 260 ATMs in the Canton of Zurich.
CHF 520.8 billion
Client assets
The net new money inflow amounted to CHF 29.82 bn in 2024.
CHF 106.6 billion
Mortgages
We are the market leader in real estate financing in the Canton of Zurich (mortgage loans in the previous year: CHF 100.9 bn).
CHF 206 billion
Fund volume
Swisscanto is the second-largest fund provider in Switzerland.
CHF 39 billion
Credit exposure to companies
Our credit exposure to companies increased to CHF 39 bn in the year under review, an 8.4 percent increase year over year.
Anchored in the Canton of Zurich
154 Years
Public service mandate
We have been the bank of the people of Zurich for more than 150 years.
CHF 140 million
Expenses
In 2024 we spent CHF 140 million for the public service mandate.
CHF 4 billion
Participation
Over the past ten years, the Canton of Zurich and its municipalities have participated in our profit with an amount exceeding CHF 4 bn.
Attractive employer
6,607
Employees
6,607 people work in over 5,779 full-time positions. With 430 apprenticeships, we are one of the largest providers of vocational training in the Canton of Zurich.
77 Points
Satisfied employees
The commitment index of the latest employee satisfaction survey is a high 77 out of 100 points.
Milestones
Corporate governance
Corporate governance
New members elected to the Board of Directors
The Cantonal Parliament held elections to replace Walter Schoch and Henrich Kisker, two members of the Board of Directors who resigned due to age. York-Peter Meyer and Kristine Schulze followed them.
Equity
Equity
Capital adequacy requirements fulfilled
In the reporting year we placed another bail-in bond totalling CHF 300 million. The total of five bail-in bonds which we have issued mean that we already fully meet the gone-concern requirements that will apply from 2026. Furthermore, the final requirement for our contingency plan has been fulfilled, which is why FINMA confirmed on 26 March 2024 that it deems the contingency plan implementable.
Group companies
Group companies
Acquisition of Complementa AG
We acquired Complementa AG in order to enhance our expertise in custody services.
Divestment of ZKB Österreich
The sale of our subsidiary Zürcher Kantonalbank Österreich AG was agreed with Liechtensteinische Landesbank (LLB).
Products and services
Products and services
Free everyday banking
At the beginning of the reporting year, we eliminated the annual fees for private accounts in CHF and debit cards.
Offer for trading and custody of cryptocurrencies
Since this reporting year we have been offering our clients trading and custody services for the cryptocurrencies Bitcoin and Ethereum.
Launch of thematic funds
Zürcher Kantonalbank’s Asset Management division expanded its range of sustainable investment strategies to include the topics of circular economy, healthy longevity and digital economy.
New vested benefits foundation
We have expanded our offering for vested benefits assets by launching a second vested benefits foundation.
Location
Location
Opening of first branch based on a new concept
As part of the modernisation of all our branches, we opened the Kloten and Wollishofen locations according to a new concept.
Opening of a location in Lausanne
We have bolstered our business with pension funds and institutional clients in French-speaking Switzerland. To this end, we opened a local sales office in Lausanne.
Sustainability
Sustainability
Sustainability for SMEs
We have a new sustainability-related advisory service for small and medium-sized enterprises (SMEs). With Eco-Check, a company analysis, we show SMEs potential for improvement in terms of resource usage, energy consumption and climate-related matters, and offer further advice and products.
Three questions for
Florence Schnydrig Moser, Head of Private Banking
Florence Schnydrig Moser, Head of Private Banking
Ms Schnydrig, you have been more visible beyond the cantonal and national borders with the Private Banking division for around two years now. What is the background to this?
We would like to raise awareness of our Private Banking services at ZKB in Switzerland and, since we have the simplified exemption, also in Germany. We offer our clients an integral value chain that takes into account all aspects relevant to their assets. This offer is in great demand – even outside our canton.
Where are you active?
We operate from Zurich throughout Switzerland and in selected markets abroad – primarily in Europe. We also look after Swiss nationals living abroad, provided the country is not on our restricted list. Prudent risk management and the preservation of our excellent reputation are top priorities in all our activities.
What is your goal?
As a reliable financial partner, we want to offer our clients excellent advice that is close to their life situation, reflects their individual values and allows them to benefit from our excellent internal and external network. In line with our range of services, we strive to continuously diversify ZKB’s income base in the Private Banking business unit in order to ensure continuity and stability.
Jürg Bühlmann, Head of Corporate Clients
Jürg Bühlmann, Head of Corporate Clients
The financial centre has changed over the past year. How does this affect the corporate client business at ZKB?
The market is in flux, many companies are reviewing their banking situation and evaluating alternatives. These are available – competition is strong and the supply of financing solutions is guaranteed, especially for SMEs. We are experiencing a significant increase in demand throughout Switzerland from larger companies and in the pension fund business.
ZKB wants to grow in these two segments. Will this goal be achieved?
Yes, we are pleased with the development. We were able to strengthen our position with large domestically oriented companies. As the second-largest universal bank, we cover their needs very well. For example, with syndicated loans, investments and trading transactions. There is also a significant demand among institutional clients for a second strong Swiss provider. This also applies in particular to French-speaking Switzerland, where we opened a sales office last year.
What feedback have you received on the ZKB presence in Lausanne?
We had already been active in the pension fund business in French-speaking Switzerland for some time. The fact that we now have a local presence is seen by our clients as a strong signal and has been very well received. A local presence enables greater proximity, a better understanding of needs and easier communication. Simply put: We are fulfilling our promise to be close to you.
Ivan Deplazes, Head of Asset Management
Ivan Deplazes, Head of Asset Management
Mr Deplazes, Asset Management opened a new location in Milan at the beginning of 2024. What strategy are you pursuing with this?
The expansion of international sales is an important strategic priority. Abroad, we are pursuing the ambition of achieving economies of scale and diversifying our client base. We can already reap the rewards here: International fund sales have increased considerably and make a substantial contribution to our overall result.
What does your strategy involve beyond that?
In addition to expanding our sales network, we are continuously developing our expertise in sustainable investments. In 2024, for example, we expanded our range to include three new thematic funds focusing on the digital economy, healthy longevity and the circular economy. These investment strategies look for companies that can both benefit from these long-term trends and address the challenges of sustainable development.
How do you assess the course of business over the past 12 months?
We have recorded strong growth in assets under management. We have become the number two provider in Switzerland with the Swisscanto brand and we are one of the top-selling asset managers in Europe. As a business area, we make a significant contribution to the success of Zürcher Kantonalbank. This is our contribution to diversifying the group’s income and risks.
Outlook
The environment for the banking industry will remain challenging in 2025. As a universal bank, however, we still expect to be able to present gratifying results thanks to our strategy and diversified business model. When conducting our business activities, we aim for a balanced combination of economically, socially and environmentally sustainable development. We aspire to further expand our market position in the Greater Zurich Area as the number one for private individuals and SMEs.
More outlook
More outlook
Subdued economic growth with significant regional differences
We anticipate global economic growth will remain subdued for the foreseeable future, but we do not expect a recession.
In 2025 we foresee a gradual, sustained economic recovery in Europe and the emerging markets outside China. Growth in China remains lower than in the past, but still higher than in the EU. Geopolitical tensions, potential trade conflicts and high government debt will lead to more volatile price trends. In particular, the potentially inflationary policy of the new US administration could result in fewer interest rate cuts and rising interest rates again.
For Switzerland we expect robust GDP growth. Inflation will likely remain stable in most other countries, giving central banks room for manoeuvre for further interest rate cuts.
Challenging environment
We anticipate competition in the Swiss banking centre will intensify further as a result of the merger of the two big banks and the increased market activities of foreign banks. The aim must be to collaborate with the political community to maintain the good framework for Switzerland as a financial centre.
Equally important is that people’s trust in the financial centre be strengthened while also highlighting the important role played by banks, particularly that of domestic banks, with respect to society and the economy.
Continuing the strategy
Zürcher Kantonalbank is adhering to its strategy. We have a business policy focused on continuity that prioritises the universal bank strategy, the bank’s high level of security and stability, as well as its proximity to clients.
We are also driving income diversification forward, in particular through a balanced product portfolio and a broad range of services in the investment and pension business. In the individual clients and SME core segments, we are striving to expand on our standing as a top-ranked bank.
All internal activities are focused on increasing quality and efficiency. Great importance is attached to the Zürcher Kantonalbank brand. We want to be perceived as the most highly appreciated bank across Switzerland, both in the physical and digital worlds.
Sustainability as an integral component of our business model
Sustainability is an integral component of our business model. We incorporate the criteria of ecological, social and economic sustainability into everything we do and are guided by the United Nations Sustainable Development Goals and the Paris Agreement. We support our corporate and retail clients with banking services on the path to net zero by 2050.
With our Net-Zero Banking Alliance commitment, we have undertaken to establish interim targets for 2030 and every five years thereafter until 2050. We make our contribution to social responsibility through our strong and, in particular, locally rooted social commitment, and by ensuring comprehensive access to financial services, especially for the target groups defined by the Cantonal Banking Act on Zürcher Kantonalbank.