Matthorn Capital

Switzerland has 24 cantonal banks, one per canton, forming a unique peer group of regionally focused universal banks. They dominate retail banking, mortgage lending (around 40% of the Swiss market), and SME financing within their home cantons, backed by strong cantonal ownership and, in most cases, state guarantees.

As a peer group, they offer investors stable, low-risk exposure to the Swiss domestic economy with high capital ratios, conservative lending, and predictable earnings from net interest income.

13 of the 24 are partially listed on the SIX Swiss Exchange (minority free float, with the respective canton retaining majority control). These form the investable peer group for equity investors.

The table below lists the banks sorted by their Price-to-Book value, but you can modify the sorting.

The remaining 11 cantonal banks are not publicly listed.

• Zürcher Kantonalbank (ZKB) — by far the largest in the group.

• Aargauische Kantonalbank (AKB)

• Banque Cantonale de Fribourg (BCF)

• Banque Cantonale Neuchâteloise (BCN)

• Banque Cantonale du Valais (BCVs)

• Banca dello Stato del Cantone Ticino (BancaStato)

• Smaller ones: Nidwaldner Kantonalbank (NKB), Obwaldner Kantonalbank (OKB), Schaffhauser Kantonalbank (SHKB), Schwyzer Kantonalbank (SZKB), Urner Kantonalbank (UKB)

Two Swiss cantons do not have their own cantonal bank:

• Solothurn (SO)

• Appenzell Ausserrhoden (AR)