Martin Schuetz told the TagesAnzeiger newspaper in an interview the bank planned to increase its private banking team in Geneva to over 1,000 by the end of 2012 from 650 now and double its staff in Zurich to 120 by next year.

"Switzerland remains a highly attractive location for JP Morgan," Schuetz said. "Our customers really value the advantages of a strong currency, minimal inflation, a prudent central bank and high service quality."

However, he noted that the recent weakening of Switzerland's prized banking secrecy after a global crackdown would mean lower margins and more competition in the industry.

"Private banks and wealth managers based in Switzerland must tighten their processes in advice and back office and significantly cut costs," he said.

While JP Morgan did not comment to WealthBriefing at the time of going to press, this publication hopes to hear more from the US bank on its business plans in Switzerland in the next few days.

The fact that such a large US bank is taking a bullish view on Switzerland is significant, because the recent battle by the US authorities to erode Swiss bank secrecy had raised fears that some rich individuals would leave the Alpine state for other locations, such as Singapore. Banking accounts for about 12 per cent of Switzerland’s GDP.

However, rising taxes in centres such as London and economic problems in the debt-laden eurozone are seen as working to the advantage of Switzerland, which has a relatively strong currency and a reputation for being attractive to wealthy foreigners.

Schuetz said the bank will more intensively use the powerful platform it has built in Geneva to manage the money of wealthy foreigners to service markets like Singapore and Hong Kong.

The expansion is also aimed at helping the bank serve big international firms based in Switzerland due to its low taxes and stable conditions as well as the strong commodity trading centres of Geneva and Zug, he added.