The Geneva-based private bank earned more and recruited more staff last year. But UBP’s management is anticipating business will be volatile over the next few months.

Union Bancaire Privée (UBP) banked a net profit of 223.8 million Swiss francs in the 2023 financial year. As the Geneva private bankers announced on Monday, this is an increase of 6.4 percent in comparison to the previous year. The increase in operating profit was even more striking, rising 11.6 percent to 269.2 million Swiss francs.

Commission Revenue in Decline

UBP said most of this was down to a 25 percent increase in interest income. Owing to a decline in trading by private clients and a fall in revenues from trading and foreign exchange transactions, net commission and fee income slid by 7.2 percent.Volumes-wise, the bank stagnated at 140 billion Swiss francs of assets under management. Although favorable market conditions brought in 7.6 billion Swiss francs and net new money of 2.9 billion Swiss francs on stock markets, the positive impact of this was offset by the appreciation in the franc against major currencies, particularly the dollar.

Significant Client Funds From Dollar Area

In dollar terms, managed assets would have increased by almost a tenth. Around half of all client funds at UBP are valued in the world’s reserve currency. On the expenses side, operating expenses edged up to 832.8 million Swiss francs, which UBP put down to recruitment and technology investments. The bank has hired new staff, especially in Switzerland and Asia. The bank’s important cost-income ratio (CIR) marginally improved year on year, increasing to 67.9 percent from 68.1.

Expansion Plans Intact

With total assets of CHF 37.4 billion Swiss francs as of the end of 2023, the banking group believes it is well positioned to drive forward its plans for organic growth and external expansion. The Tier 1 capital ratio climbed to a very solid 28.9 percent from last year’s 26.7 percent.

Bank CEO Guy de Picciotto has mixed feelings about the future: «2024 is likely to be another volatile year. But we know we can count on the commitment of our teams and our unique offering, to expand our presence in our target markets,» he explained on Monday.