Investment banking profits at Credit Suisse and UBS, the two largest Swiss banks, are likely to be down by around 40% in the second quarter compared to the first three months of the year as a result of a drop-off in primary market activity, according to Morgan Stanley.

In a research report on the Swiss banking sector, analysts at the US bank led by Huw Van Steenis, said that the countries' banks not been insulated from a predicted downturn in investment banking profits.