Monthly Archives: October 2015

Small Comparison of Selected Banks with Regard to Capital and Leverage Ratio, Cost-Income Ratio

2014 Bank Name Total Assets Cost-Income Ratio Leverage Ratio Capital Ratio CET1 Ratio
in CHF m % % %
TKB Thurgauer Kantonalbank 19’730 53.3 9.04% 17.7
BEKB Berner Kantonalbank 27’055 54.3 8.50% 19.2
GLKB Glarner Kantonalbank 4’475 59.9 8.45% 16.4
CS Credit Suisse Group 921’462 86.8 4.74% * 10.1

* lower if 2019 requirements are factored in; Swiss Leverage Ratio 4.1% according to this presentation , page 5.

2014 Bank Name Net Profit Employees Profit per
 in CHF m Employee in CHF
TKB Thurgauer Kantonalbank 112.10 667 168’066
BEKB Berner Kantonalbank 130.68 1’137 114’934
GLKB Glarner Kantonalbank 15.70 194 80’928
CS Credit Suisse Group 2’105.00 45’800 45’961

Based on the above, which bank would you chose?

Notes:

– a high cost-income ratio means low margins, low profitability and high relative employee costs –> this leads to restructuring, job cuts and relevant for any customers: client relationship manager changes

– a low leverage ratio means higher risks when the bank is hit by the inevitable stormy waters

– profit per employee shows you which banks are cost effective employers and a high profit per employee should make shareholders happy

– a high capital ratio signals good reserves for choppy business, a cushion in case of adverse business changes