- J.P. Morgan is moving Lutz Karl to Zurich on July 1 to lead Swiss Large and Mid Cap corporate banking coverage, signalling a stronger onshore commitment.
- The expansion targets openings created by Credit Suisse’s collapse, as Swiss corporates and SMEs seek alternatives to a UBS-dominated market.
- J.P. Morgan is scaling broadly in Switzerland, including roughly doubling domestic private-banking assets since 2020 and adding staff in Zurich and Geneva to support cross-product delivery.
- Growth will be tested by tighter Swiss regulation, margin pressure and high compliance costs in an increasingly consolidated banking sector.
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The appointment of Lutz Karl to Zurich to lead Large and Mid Cap corporate banking coverage in Switzerland marks a significant shift in J.P. Morgan’s positioning. As of July 1, Karl — formerly responsible for large corporate clients across the DACH region — will localize leadership in Switzerland, underscoring J.P. Morgan’s intent to deepen its roots and elevate its local client relationships. This role, documented in a June 2025 internal memo signed by senior EMEA co-heads Marcus Hiseman and Stefan Povaly, cements Switzerland as a core strategic market for the bank’s Global Corporate Banking (GCB) operations.
The timing is opportune. Following the demise of Credit Suisse in 2023 and its absorption by UBS, there has been a void in Swiss corporate banking services — especially amongst SMEs and mid-size corporates that once relied on the former institution for comprehensive service. Global banks including J.P. Morgan have been filling in by increasing staffing and service capacity locally.
On the private banking side, J.P. Morgan has already doubled its Swiss domestic private banking business in asset terms between 2020 and 2024, managing about USD 55.6 billion by end-2024. Staff levels in Zurich and Geneva rose by roughly 30 percent in 2025, with plans to more than double headcount by 2030. Such growth reflects strong momentum in wealth management, and the firm aims to translate that into cross-selling corporate and investment banking products to its private banking clients.
That said, the Swiss banking sector faces several systemic headwinds. Operating profit expectations for domestic banks are muted due to pressure on net interest margins; regulatory reforms—such as those targeting UBS’s capital structure and foreign unit capitalization—are increasing cost of compliance and capital for all market players. Switzerland’s finance industry is consolidating; smaller private banks are under strain, with licensing burdens (Finia) and regulation pushing mergers and exits.
Stakeholders should watch how J.P. Morgan addresses local aspects of regulation and client expectations. Will its GCB-Mid Cap offering be complemented by locally-based product specialists (e.g. DCM, ECM, trade finance)? How will it compete with entrenched Swiss banks in relationship-driven areas? Also, regulatory regime changes — for example in capital, liquidity or tax — may shift cost structures and risk thresholds, especially for foreign banks active in Switzerland.
Supporting Notes
- On July 1, Lutz Karl will relocate to Zurich to head coverage of Large and Mid Cap clients in Switzerland; he formerly served Large Caps across the DACH region. The memo was signed by Marcus Hiseman and Stefan Povaly, Co-Heads GCB EMEA.
- Bernhard Brinker (currently Mid Cap head for Germany & Austria) will now also oversee Large Cap business and other GCB business areas.
- Following Credit Suisse’s collapse, global banks (J.P. Morgan, Bank of America, Deutsche Bank, Citigroup) have increased presence in Switzerland aiming to serve SMEs and corporates left underserved.
- Between 2020–2024, J.P. Morgan doubled its Swiss domestic private banking assets, reaching approximately USD 55.6 billion by end-2024; in 2025 alone, assets grew nearly 20 percent, over half via net new money. Staff in Zurich and Geneva surged ~30 percent.
- Aggregate assets under Swiss banks rose modestly: balance sheet total of all banks in Switzerland grew by 1.3 percent in 2024, mortgage loans and securities financing increased significantly; big banks’ domestic lending and borrowing shows varying trends by category.
- Swiss banking regulation: the government proposed measures requiring UBS to raise ~USD 26 billion in additional equity to fully capitalize foreign units, reduce reliance on AT1 bonds, with full implementation over six to eight years; equivalent pressures indirectly affect competitors.