Union Bancaire Privée (UBP) has reported net profits of CHF115.3 million for the first six months of 2018, an increase of up 5.3 per cent from the CHF109.5 million reported for the same period in 2017.
The operating result of CHF147.4 million, compared with CHF133.9 million a year earlier, represents an increase of 10.1 per cent (+CHF13.5 million).
Net new money during the first half of 2018 amounted to CHF 2.7 billion, leading to total assets under management reaching CHF128.4 billion at the end of June 2018, compared with CHF125.3 billion at the end of December 2017. This was a result of inflows from both private and institutional clients, particularly in Asia and Europe.
Operating revenues grew by 6.0 per cent, rising from CHF509.6 million in the first half of 2017 to CHF 540.0 million at the end of June 2018. In a more volatile market environment, the decrease in brokerage fees, caused by fewer client transactions, was offset by a rise in management fees from assets managed in funds, as well as discretionary and advisory mandates, together now accounting for over 60 per cent of assets under management.
Operating expenses of 341.0 million at the end of June 2018 were up slightly from CHF323.7 million a year earlier. This increase was mainly the result of new hires in the first half of the year, as well as investments in IT and digital. The cost/income ratio of 63.1 per cent continues to demonstrate that costs and margins are managed both efficiently and effectively.
The Tier 1 ratio, which rose to 28.2 per cent at the end of June, remains well above the minimum requirements stipulated under Basel III and by the FINMA. The Bank’s solid financial base can also be seen in its excellent short-term liquidity ratio, which stands at 290.4 per cent.
“These results reflect our teams’ dynamism and our ability to meet clients’ expectations in a more difficult market environment. We continue to invest in our priority markets, as well as expanding our offering of innovative solutions to private and institutional clients,” says Guy de Picciotto, UBP’s CEO.
