Zürcher Kantonalbank once again achieves very pleasing consolidated profit – the canton and municipalities participate with a record-high CHF 581 million
Media Release from 6 February 2026
- Consolidated profit before taxes rose by 10.3% to CHF 1,422 million (previous year: CHF 1,289 million) – the excellent securities and investment business as well as a successful trading result contribute significantly to this increase
- At CHF 1,082 million (+5.7%), the result from commission business and services reaches a new high
- At CHF 1,679 million, the net result from interest operations is at the previous year’s level (CHF 1,680 million) despite the challenging interest rate environment
- Client assets increased by 11.2% to CHF 579.0 billion, due in particular to a positive market performance (CHF 33.6 billion) and broad-based net new money inflow (CHF 13.6 billion) in assets under management
- The canton and municipalities participate in the profit of Zürcher Kantonalbank with a record amount of CHF 581 million
- With a risk-based TLAC (Total Loss Absorbing Capacity) ratio of 32.2% and a CET1 (Common Equity Tier 1) ratio of 21.2%, the bank has a strong capitalisation; the figures significantly exceed the regulatory minimum requirements
- The rating agencies continue to assign Zürcher Kantonalbank an AAA rating, thereby making it one of the safest banks in the world
Zürcher Kantonalbank can look back on a successful 2025 financial year. With consolidated profit before taxes of CHF 1,422 million (previous year: CHF 1,289 million), it exceeded the previous year’s strong result by 10.3%. The factors that contributed to this growth included a very strong commission business and services totalling CHF 1,082 million, which corresponds to a year-on-year increase of CHF 58 million or 5.7%, and a trading result of CHF 427 million, which is 21.2% higher than the previous year’s figure of CHF 353 million. At CHF 1,679 million, the net result from interest operations was at the previous year’s level (CHF 1,680 million) despite the challenging interest rate environment. Consolidated profit after tax amounts to CHF 1,241 million (+10.8%).
“In a challenging environment, we were able to achieve successful growth across the entire breadth of the market and continue our success story. We acquired over 30,000 new clients, recorded a pleasing net new money inflow of almost CHF 14 billion and further expanded our leading position in the Zurich economic area. This demonstrates the high level of trust our clients place in our bank,” says Urs Baumann, CEO of Zürcher Kantonalbank. “By establishing the ‘Private Clients’ business unit, we have positioned ourselves for the future and taken an important step towards further strengthening our core business. At the same time, we remain committed to our proven strategy, which is based on sustainable growth and a responsible risk policy, and are making targeted use of national and international opportunities in selected segments. This enables us to diversify our income base and strengthen the security and stability of Zürcher Kantonalbank.”
The Canton of Zurich and the municipalities participate in the profit of Zürcher Kantonalbank with a total of CHF 581 million – this corresponds to CHF 19 million more than in the previous year (CHF 562 million). The municipalities receive dividends totalling CHF 175 million (+CHF 5 million). The canton will receive a total of CHF 406 million (+CHF 14 million), which includes the OECD minimum tax of CHF 169 million (+CHF 13 million) and compensation for the state guarantee of CHF 34 million (+CHF 3 million). Over the past ten years, the canton and its municipalities have participated in the bank’s profit with an amount exceeding CHF 4 billion. In addition, Zürcher Kantonalbank allocated CHF 149 million in 2025 as part of its statutory public service mandate, thereby fulfilling the bank’s broader social responsibility.
Stable net interest income despite low interest rate environment
Operating income increased by 4.0% year-on-year to CHF 3,213 million. All three pillars of the diversified business model contributed to the very pleasing financial results. Interest operations – the bank’s most important income stream – generated a net result totalling CHF 1,679 million despite the challenging interest rate environment and remains at the previous year’s level (CHF 1,680 million). This is due in particular to the change in default-related value adjustments and losses from interest operations, which fell from CHF 57 million to CHF 13 million.
The gross result from interest operations declined slightly. The mortgage portfolio increased by 4.3% to CHF 111.2 billion (previous year: CHF 106.6 billion) – while maintaining high quality standards in terms of borrowers and financed properties. However, the pleasing volume growth in the lending and mortgage business was unable to offset the decline in income from the deposit business.
Securities and investment business strengthens net income from commission business and services
In a volatile and challenging market environment, the commission business and services, the bank’s second-largest income stream, performed very well. At CHF 1,082 million, it reached a new high, exceeding the previous year’s figure (CHF 1,024 million) by 5.7% or CHF 58 million. Commission income from the securities and investment business made a significant contribution to this.
As at 31 December 2025, client assets rose by almost CHF 60 billion to CHF 579.0 billion (previous year: CHF 520.8 billion), of which CHF 498.6 billion account for assets under management (previous year: CHF 457.3 billion). The CHF 41.3 billion increase in assets under management is attributable to a broad-based net new money inflow of CHF 13.6 billion as well as a positive market performance and other influences totalling CHF 27.7 billion. The latter also include the reduction in assets under management due to the sale of Zürcher Kantonalbank Österreich AG.
Higher result from trading activities due to client activity and market development
The third income stream, the result from trading activities, exceeded the previous year’s figure (CHF 353 million) by 21.2% or CHF 75 million. The CHF 427 million achieved is attributable to the dynamic market environment accompanied by a high level of client activity. At CHF 232 million, the result from trading in foreign exchange, banknotes and precious metals, for example, increased significantly (+58.9%) compared to the previous year. At CHF 101 million, the result from trading in equities and structured products exceeded the previous year’s figure by 28.5%.
Leading role in the Swiss capital market business
Zürcher Kantonalbank is one of the leading providers in the Swiss capital market. In 2025, it acted as lead manager for 19 equity transactions of issuers listed on the SIX Swiss Exchange. With 105 debt capital transactions totalling CHF 16.5 billion and a market share of 21% in the CHF domestic segment, it underlines its strong position and its important economic function.
Growth in line with strategy and targeted IT investments
At CHF 1,790 million, operating expenses rose by 3.4% or CHF 59 million compared to the previous year, in line with the forecast. Personnel expenses increased slightly to CHF 1,249 million due to the higher headcount, in line with the bank’s strategy (previous year: CHF 1,223 million).
General and administrative expenses rose by 6.5% year-on-year to CHF 541 million. This increase is attributable to two reasons. First, costs for information and communication technology rose to CHF 209 million (previous year: CHF 193 million) due to targeted investments in IT as part of the bank’s digital development. Licence costs also increased, partly as a result of the higher headcount. In addition, costs for third-party services – such as for financial market data, payment transactions and card transactions – rose in line with the increased business volume, leading to a 6.6% rise in other operating expenses to CHF 290 million.
At 55.5%, the cost/income ratio (CIR) remains well below the target range (previous year: 55.0%).
Lower value adjustment and depreciation/amortisation expenses
At CHF 51 million, expenses in connection with value adjustments on participations and depreciation and amortisation of tangible fixed assets and intangible assets were significantly below the previous year’s figure (CHF 72 million). The decrease is mainly due to goodwill amortisation of CHF 12 million in the previous year. The line item “Changes to provisions and other value adjustments and losses” increased from CHF 8 million to CHF 18 million. The difference is mainly due to the CHF 6 million increase in provisions for credit risks.
Successful sale of the Austrian subsidiary
The extraordinary income of CHF 68 million is primarily due to the successful sale of Zürcher Kantonalbank Österreich AG. This was transferred in full to Liechtensteinische Landesbank AG on 9 January 2025.
Regulatory requirements comfortably met
The bank’s balance sheet remains largely unchanged; the total assets amount to CHF 206.2 billion (previous year: CHF 202.6 billion). The bank holds around a quarter of its total assets in the form of highly liquid assets, mainly in the form of SNB deposits. All liquidity ratios remain at a very high level, comfortably fulfilling the regulatory requirements. For example, the liquidity coverage ratio (LCR) was 136% (previous year: 142%) and the net stable funding ratio (NSFR) 118% (previous year: 116%).
Zürcher Kantonalbank continues to have an extremely strong capitalisation. The risk-based TLAC ratio (total loss-absorbing capacity) was 32.2% (previous year: 25.7%), which is significantly higher than the capital adequacy requirements of 20.7% as a systemically important bank. The risk-based capital ratio included in the TLAC ratio on a going-concern basis is 22.7% and significantly exceeds the current capital adequacy requirements of 13.8%. The sharp increase in capital ratios is due on the one hand to the more risk-sensitive calculation of risk-weighted assets (RWA) following the introduction of the Basel III final framework on 1 January 2025, which led to lower RWA. On the other hand, the retention of profits strengthens the equity base. At 21.2%, Common Equity Tier 1 (CET 1) is more than double the required 9.5%. This means that Zürcher Kantonalbank comfortably meets the existing capital adequacy requirements.
The rating agencies Fitch, Moody’s and Standard & Poor’s left their ratings for Zürcher Kantonalbank unchanged at AAA and Aaa, respectively. Zürcher Kantonalbank is also one of the safest universal banks in the world on a stand-alone basis (i.e. without taking any support from the Canton of Zurich into account), as evidenced by the stand-alone rating of aa- (Standard & Poor’s).
Outlook
“In a challenging environment marked by below-average growth in Switzerland, geopolitical uncertainties and challenging interest rate conditions, our broadly diversified and long-term oriented universal banking model is showing its strength. Our operational excellence and the growth opportunities in the areas of retail and corporate clients, private banking and asset management will enable us to consistently pursue our successful course,” says Urs Baumann.