Union Bancaire Privée boosted profit in the first half of the year and attracted net new monies. The Geneva-based bank is also reported to be pursuing a takeover in the U.K.
Union Bancaire Privée has in recent years adjusted its business model to focus more on fees from managing client portfolios, and this is now bearing fruit, according to its half-year earnings released Thursday.
In a stagnant sharing trading environment the private bank increased its operating income by 6 percent to 540 million Swiss francs ($539.8 million), while net income gained 5.3 percent to 147.4 million francs.
Heavily in Mandates
The decline in brokerage fee income was offset by higher administrative charges, with more than 60 percent of managed assets in investment funds, and managed as mandates, it said.
The first half of the year saw net new money inflows of 2.7 billion francs, pushing total managed assets up to 128.4 billion francs.
UBP generated higher operating costs in the six months through June but was able to keep ist cost-income-ratio steady at 63.1 percent, thanks to stringent cost controls and stable margins.
Renewed Dealmaking?
Separately the «Financial Times» Thursday reported that the Geneva bank is planning a takeover of the London-based investment boutique ACPI. The move, confirmed by UBP, is thought to be tied to the imminent Brexit, with the aim of building an offshore basis in the U.K. capital.
ACPI manages client assets of around $4 billion and employs 70 staff. The purchase price is thought to be between $40 and $60 million. In May, UBP acquired Banque Carnegie in Luxemburg with the aim of strengthening its presence in the EU.
