Union Bancaire Privée recorded higher profits in the first half but saw total client assets shrink due in part to ongoing market turmoil.
UBP reported a net profit of 112.6 million Swiss francs, up 12.4 percent from 100.2 million francs in the same period last year, according to its half-year results posted Monday.
Revenues rose 10.5 percent year-on-year to 562.1 million francs, driven by higher net interest margin (up 42.7 million francs), higher trading (up 16.5 million francs) especially from FX and the addition of new businesses including of Millennium Banque Privée in late 2021 and Danske Bank International in 2022.
Operating expenses also increased 10.5 percent to 411.7 million francs from acquisitions and investments, particularly from recruitment in priority markets and expansion of the bank’s responsible investment offering.
AUM Dips
Assets under management at UBP fell 7.6 percent to 148.2 billion, as of end-June, which the bank attributed to a sharp market correction. It posted positive net new money of 3.4 billion from the acquisition of Danske Bank International which was offset by outflows from existing clients, mainly institutional investors.
«The sharp correction in financial markets and the upturn in volatility since the start of the year directly affected both our asset base and brokerage activity among our clients. However, higher interest rates and favorable movements in exchange rates, particularly the rise in the dollar, enabled UBP to achieve good results,» said UBP chief executive Guy de Picciotto.
«At a time of major uncertainty arising from the conflict in Ukraine and inflation risks, we must show agility and adjust our offering in order to address client concerns, as well as being ready to invest again when the time is right.»
