Swiss Bank Group Chief Financial Officer Todd Tacner said that the Swiss National Bank's long-term policy environment of zero interest rates is having an important impact on the profitability of local banking business in Switzerland. Earlier, it was reported that based on current inflation expectations, the SNB may keep the benchmark interest rate at zero until the end of 2027. In a conference call after UBS announced its second-quarter results, Tacna pointed out that the zero-interest rate environment did put significant pressure on UBS's business in Switzerland. He admits that if interest rates rise or fall below zero, banks' earnings will be better. In a negative interest rate environment, banks can often more easily transfer costs to customers, thereby increasing net interest income and returns in this area of business.

Swiss Bank Group Chief Financial Officer Todd Tacner said that the Swiss National Bank's long-term policy environment of zero interest rates is having an important impact on the profitability of local banking business in Switzerland. Earlier, it was reported that based on current inflation expectations, the SNB may keep the benchmark interest rate at zero until the end of 2027. In a conference call after UBS announced its second-quarter results, Tacna pointed out that the zero-interest rate environment did put significant pressure on UBS's business in Switzerland. He admits that if interest rates rise or fall below zero, banks' earnings will be better. In a negative interest rate environment, banks can often more easily transfer costs to customers, thereby increasing net interest income and returns in this area of business.