First half-year results 2022
- UBP's net profit was CHF 112.6 million in the first half of 2022, up 12.4% from CHF 100.2 million a year earlier.
- Revenues increased by 10.5%, driven by a higher net interest margin and recent acquisitions.
- Assets under management totalled CHF 148.2 billion at the end of June 2022 compared with CHF 160.4 billion at end-2021.
GENEVA, July 18, 2022 /PRNewswire/ -- UBP's assets under management amounted to CHF 148.2 billion at end-June 2022, down 7.6% compared with the end of December 2021. This CHF 12.2 billion decrease arose from the sharp correction in financial markets during the period. Net new money, meanwhile, was positive at CHF 3.4 billion, driven in particular by the acquisition of Danske Bank International, completed in the first quarter, which offset outflows among existing clients, mainly institutional investors.
Revenues rose by 10.5% from CHF 562.1 million in the first half of 2021 to CHF 620.9 million in the first half of 2022. This increase resulted from a higher net interest margin (up CHF 42.7 million) following the recent rate hikes, but also from the addition of the Millennium Banque Privée business in late 2021 and Danske Bank International in 2022. Revenues from trading – principally forex – grew sharply during the period (by CHF 16.5 million) and helped to compensate for the decline in trading activity among private clients.
Operating expenses totalled CHF 411.7 million in the first half of 2022 as opposed to CHF 372.7 million in the first half of 2021. This 10.5% rise was the direct result of recent acquisitions and investments, particularly the recruitment of several teams in our priority markets and the expansion of the Bank's responsible investment offering. Net profit reached CHF 112.6 million, up 12.4% from CHF 100.2 million a year earlier.
UBP's Tier 1 ratio of 23.2% at the end of June 2022, along with its short-term liquidity coverage ratio (LCR) of 286.5%, illustrate the quality of its balance sheet and financial strength, as confirmed by Moody's decision to maintain its Aa2 long-term deposit rating.
"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 favourable movements in exchange rates, particularly the rise in the dollar, enabled UBP to achieve good results. 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," said UBP's CEO Guy de Picciotto.
About Union Bancaire Privée (UBP) – www.ubp.com
UBP is one of Switzerland's leading private banks, and is amongst the best-capitalised, with a Tier 1 ratio of 23.2%. The Bank is specialised in the field of wealth management for both private and institutional clients. It is based in Geneva and employs 1,985 people in over twenty locations worldwide, and holds CHF 148.2 billion in assets under management (all figures as at 30 June 2022).
Source: Union Bancaire Privée (UBP)