Union Bancaire Privée reports net profit of CHF 210.4 million, up 4.5%
- UBP’s net profit was CHF 210.4 million in 2022, up 4.5% from CHF 201.2 million a year earlier
- Revenues rose by 7.0% to CHF 1.213 billion
- Assets under management totalled CHF 140.4 billion at end 2022
Following the sharp correction in financial markets in 2022, as well as negative exchange rate effects due to the strength of the Swiss franc against the euro and the pound, assets under management at UBP amounted to CHF 140.4 billion at the end of December 2022 (-12.5% vs. 2021).
Net new money was positive, at CHF 0.9 billion, driven in particular by the integration of Danske Bank International and inflows from private clients, which offset the fund outflows mainly from institutional investors.
Revenues came to CHF 1.213 billion in 2022, up 7.0% year on year, boosted primarily by an increase in the net interest margin following the recent rate hikes. Profits on forex trading were also strong, rising by
CHF 16.0 million. This helped compensate for the decline in fees and commissions (-6.2%) due to slower brokerage activities for private clients.
Operating expenses totalled CHF 826.6 million at the end of the year compared with CHF 754.5 million in 2021 (+ 9.6%). This increase is the result of the exceptional costs related to the acquisitions of Millennium Banque Privée in November 2021 and Danske Bank International in January 2022 along with substantial investments made in recruiting new teams in UBP’s priority markets (Eastern Europe, the Middle East and Asia).
The Bank’s net profit for 2022 therefore came in at CHF 210.4 million, up 4.5% from CHF 201.2 million a year earlier. Its cost/income ratio stands at 68.1% (compared with 66.5% for 2021).
In addition, UBP recorded an extraordinary income of CHF 29.3 million from the sale of a minority participation. This one-off gain was fully offset by a strengthening of the general banking reserves, value adjustment & depreciations, and additional provisions.
With a stable balance sheet total of CHF 38.8 billion as at the end of December 2022, UBP has the means to continue implementing its organic and external development plan. At 26.7%, its Tier 1 ratio remains well above the minimum requirement under the Basel III accords and FINMA regulations. UBP’s short-term liquidity coverage ratio (LCR) of 304.6% and Moody’s decision to maintain its Aa2 long-term deposit rating further emphasise UBP’s financial strength.
"These results demonstrate that our foundations are strong. I’m grateful for all the hard work put in by our teams to stay close to our clients and come up with new investment solutions in this volatile environment. We must be prepared for another unpredictable year although the current headwinds can be considered more cyclical than structural. We are focused both on risk management and on adapting our range of investment solutions to take advantage of the new market regime. We are also determined to channel resources into our human capital and keep hiring talents to continuously strengthen our expertise and offer high-quality services to both institutional and private clients. Our business model has proved resilient, allowing us to maintain our capacity to invest year after year and pursue our growth strategy worldwide",
states UBP’s CEO Guy de Picciotto.
