Swiss Banking News: March 2009

19.03.2009 Management consulting firm Booz & Company published the report 'Private Banking Beyond The Perfect Storm', which was based on a survey of 20 top executives in the private banking sector conducted in January and February 2009. According to the report, managers at Switzerland's private banks named the current economic crisis the worst since 1924, and could stimulate the fundamental changes in industry.
Most bankers who participated in survey agreed there would be consolidation of the banks. Also, the report showed that clients have moved out of risky products into liquid, low margin assets.
Among the factors that led to industry consolidation there is the increasing pressure on Swiss banking secrecy. Many Swiss banks have made investments in their offshore structures, the viability of which is now in question.
All bankers surveyed believed that private banks with no clearly defined business model or ownership structure would probably have to merge in order to remain profitable.

27.03.2009 Credit Suisse Real Estate Fund International published its fiscal results for 2008. The Fund's net earnings for the year increased by more than 22% and made CHF 63.3 million. The occupancy rate was extremely high at the rate of 96%, and due to this rental income of Credit Suisse Real Estate Fund International in fiscal 2008 increased by 21% and made CHF 77.2 million.
The more difficult global financial environment in 2008 compared to 2008 is reflected in the valuation of the real estate portfolio. The decrease of net asset value of each unit (their total number being 1,820,000) from CHF 1,107.60 to CHF 1,037.49 resulted in a -6.3% return on investment.
In fiscal 2008, CS REF International continued to expand its portfolio, which at the end of the year included 23 properties in seven countries.