The forecast for total non-performing loans (NPLs) in Switzerland shows a consistent downward trend from 2024 to 2028. Starting at 0.51% in 2024, the NPL ratio is projected to decline to 0.42% by 2028. This represents a year-on-year decrease of around 3.92% from 2024 to 2025, 4.08% from 2025 to 2026, 6.38% from 2026 to 2027, and 4.55% from 2027 to 2028. For context, the actual NPL ratio in 2023 stood higher, at [insert 2023 value], compared to forecasted values.
Over the last two years, the average annual percentage decrease was [insert two-year average]. The Compound Annual Growth Rate (CAGR) from 2024 to 2028 stands at approximately [insert CAGR], indicating a steady improvement in the quality of loans.
Future trends to watch for:
- Economic stability and its impact on loan performance.
- Regulatory changes affecting Swiss banking practices.
- Technological advancements in credit risk assessment.
