The Genevan wealth manager's profits edged lower in the first half of this year, but operationally it made advances on the year – thanks in part to the coronavirus crisis.
Union Bancaire Privée's profits through June dwindled eight percent to 108 million Swiss francs ($114 million) on the year, it said in a statement on Friday. This contrasts with a sharply improved operating result of 131 million francs, a rise one-fifth on the prior year. A London real estate disposal has smoothed last year's result.
The family-controlled Genevan private bank pulled in 3.7 billion francs in fresh money – a 2.7 percent growth rate on its existing assets – and hiked income from fees and commissions as well as trading at a double-digit percentage rate. As with most Swiss lenders, interest income dropped but makes for a relatively small portion of UBP's income mix.
Markets Weigh on Funds
While financial market turmoil led clients to trade more, it took a bite out of UBP's assets, which stood at 137.2 billion francs on June 30, compared to 140.3 billion at year-end. The private bank also trimmed its spending by 3 percent, which helped boost profits and lower UBP's cost-income ratio.
CEO Guy de Picciotto voiced caution on UBP's outlook despite the first-half fillip: «We should not, however, underestimate the severe contraction in the real economy, which has led us to adopt a relatively cautious investment strategy for the next few months,» he noted.
