Annual results 2019

Union Bancaire Privée’s assets under management rise more than 10% to CHF 140.3 billion

Assets under management were CHF 140.3 billion at the end of 2019, up 10.6% (CHF 13.5 billion) for the year.
Net inflows were positive, showing an increase of CHF 4.5 billion for the year.
Net earnings came to CHF 187.8 million, compared with CHF 202.4 million the previous year.

Strengthened operations and offering

Assets under management reached CHF 140.3 billion, a rise of 10.6% from 2018. This increase is attributable to favourable markets and the strong performances of our managed mandates, as well as substantial net capital inflows (CHF 4.5 billion), mainly from private but also from institutional clients. Our Asian entities contributed strongly to UBP’s organic growth in 2019, as did the Near and Middle East as well as Eastern Europe. Substantial investments were also made in the London, Luxembourg, Monaco and Zurich entities, for both the institutional and the private client segments.

Revenues showed a slight increase (+0.6%) to CHF 1.07 billion. The net interest margin remained stable (-0.7%) despite the impact of negative interest rates. Brokerage grew by 8%, while lack of volatility in the currency markets resulted in a 12% drop in FX transactions.

Operating expenses grew 3.9% to CHF 725.2 million as resources were allocated to our London and Luxembourg entities (in relation to ACPI and Carnegie), but also due to significant investments in the digital arena.

Net earnings were CHF 187.8 million, compared with CHF 202.4 million the previous year (-7.2%). The 2019 result includes the sale of real estate property in London as well as the payment of USD 14 million to the US Department of Justice as part of the Swiss Bank Program. The cost/income ratio was 67.9%, compared with 65.8% in 2018.

“Our industry is facing major challenges such as negative interest rates, margin pressure, new competitors, and digital development. It is, therefore, vital that we continuously anticipate, innovate and adapt our offering to the fast-changing requirements of both private and institutional clients, as demonstrated by our successful private market product offering,”

says UBP's CEO Guy de Picciotto.

Strong fundamentals

The balance sheet total has remained stable, at CHF 32.8 billion as at 31 December 2019 (CHF 32.6 billion a year before), and the Tier 1 ratio, at 25.6%, is substantially in excess of both Basel III and FINMA minimum requirements. Our short-term liquidity coverage ratio stands at 316.4%. UBP is an extremely well-capitalised bank, and one with the means to further continue developing in Switzerland and abroad.