Very strong capitalization, prudent risk management with high cost efficiency and advanced digitalization helping to sustain profitability. Close ties with the financially strong Canton of Schwyz, facilitated by full ownership and a statutory guarantee. Leading franchise in home canton with growing private banking and investment funds business segments. Concentration risk from limited geographic diversification in residential mortgage lending. Strong reliance on net interest income in the challenging very-low-interest-rate environment. Plans to further grow retail loans, given the increasingly high level of indebtedness of Swiss households and historically high house prices. The stable outlook on Schwyzer Kantonalbank (SZKB) reflects S&P Global Ratings' expectation that the likelihood of support from the Canton of Schwyz will remain unchanged in the next two years.
