Private banks' results also continue to be heavily impacted by ongoing economic and regulatory uncertainties in 2012. Some relief was experienced by the financial crisis being less acute at least for some time and on the whole, rallying stock market. However, the more positive market environment cannot gloss over the fact that there are some very big challenges to be mastered. Still unclear are for example the financial impact of an agreement with the US or the Swiss Federal Court's decision on retrocessions. All of this, however, is an indication that Swiss private banks will remain under pressure also in the coming months.
Therefore, Swiss private banks would be well-advised not to interpret 2012 as the much awaited structural tipping point. Instead, the remaining issues and challenges should be met with the same intensity as in the past in order to bring about timely changes to the business models.