Leading franchise in home canton. Sound risk and financial profiles, underpinned by very strong capitalization, prudent risk management, and sustained profitability. Close ties with the financially strong Canton of Schwyz, facilitated by full ownership and a statutory guarantee. Limited earnings diversity with strong reliance on net interest income in the challenging interest rates environment. Concentration risk from limited geographic exposure and focus on residential mortgage lending. Historically high house prices might pose future credit risks. The stable outlook on SZKB reflects our expectation that the likelihood of support from the Canton of Schwyz will remain unchanged in the next two years. The ratings on SZKB are sensitive to our assessment of the owner's ability and willingness to support the bank.
