Union Bancaire Privée is one of the first Swiss private banks to present its results for the Corona year. The inflow of new money was considerable. Nevertheless, the bottom line was only a profit on par with the previous year.
Geneva-based Union Bancaire Privée (UBP) increased its assets under management by 5.1 percent, or 7.1 billion francs, to 147.4 billion francs ($166.2 billion) last year, the family-run institution announced Thursday. Compared to the previous year, net new money inflows doubled to 8.97 billion francs.
UBP saw significant inflows from virtually all of its major markets (Switzerland, the U.K., the Middle East, Europe and Asia); in addition, its investment funds and mandates performed well, the bank said.
Client Confidence in UBP
«These results demonstrate the confidence our clients have in both UBP and the Swiss financial center. Our teams’ adaptability and proactivity have enabled us to keep offering appropriate investment solutions in this unprecedented context, while maintaining high-quality services for all our clients worldwide. We are determined to continue to invest and expand our presence in our key markets,», said UBP’s CEO Guy de Picciotto.
In an environment characterized by a significant reduction in the net interest margin due to declining U.S. interest rates, income remained stable (plus 0.4 percent) and amounted to 1.071 billion francs. The 74.6 million decline in interest margin was fully offset by a 58.8 million (plus 8.7 percent) increase in commissions and fees.
Recruitment of New Teams
Operating expenses decreased slightly (minus 0.9 percent) to 718.4 million francs, despite significant investments in the IT division – particularly in digital management and communications to ensure business continuity during the Corona crisis – and the recruitment of new teams for the bank's key growth markets.
Operating profit increased by 8.7 percent. Meanwhile, net income fell 3.4 percent to 181.4 million francs from 187.8 million francs a year earlier, the figures further show. The decline is namely due to the sale of a property in London in 2019, the bank specified. Without this extraordinary effect, the 2020 result would have been more or less balanced or increased by 1.9 percent.
Financial Resources
At 67.1 percent, the cost/income ratio improved slightly compared to the same period last year, when it was 67.9 percent. UBP has the means to continue its development both in Switzerland and abroad, the bank said, having a balance sheet of 37.8 billion as of the end of December 2020 (up from 32.8 billion in 2019), and a Tier 1 ratio of 27.7 percent.
