First half of 2010 - Union Bancaire Privée records net earnings of more than CHF 100 million and deploys its resources in Asset Management and Private Banking
Geneva (ots)
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- Union Bancaire Privée (UBP) has announced net earnings of CHF 103.3 million (USD 95.6 million) at the end of the first half of 2010, in line with expectations.
- UBP attracted CHF 3.4 billion (USD 3.1 billion) in capital inflows in the first half of 2010 and has seen its total assets under management stabilise at CHF 71.9 billion (USD 66.5 billion) as at 30 June 2010.
- Due to its conservative risk and balance sheet management, UBP continues to enjoy solid financial foundations, with a Tier 1 capital ratio of 26.6%.
- With the appointment of a Managing Director to head its Private Banking division and the strengthening of its sales, asset management and marketing teams, UBP is pressing ahead with the restructuring of its business activities in its two largest growth centres: private and institutional asset management, strongly oriented towards the emerging markets.
"It is our determination and our flexibility which allow us to rise to today's challenges and to maintain our profit margins at a time when the markets are still volatile" said Guy de Picciotto, UBP's CEO. "In the first half of this year, we have concentrated our efforts on the quest for performance, preserving our clients' capital and expanding our product range. At the same time, we have made significant investments to reinforce our business activity in the two principal areas of our development - Private Banking and Asset Management - and we have grown our emerging-market expertise."
Profitability maintained
At a time when the markets are highly volatile, interest rates are low and exchange-rate effects are negative, UBP has returned a consolidated net profit of CHF 103.3 million (USD 95.6 million) in the first half of 2010. Despite the tough banking environment, UBP continues to attract new clients with a significant proportion coming from emerging markets, with capital inflows of CHF 3.4 billion (USD 3.1 billion) in the first half of 2010. Assets under management stabilised at CHF 71.9 billion (USD 66.6 billion) as at 30 June 2010, compared to CHF 75 billion (USD 72 billion) at the end of 2009. Alternative assets have stabilised at CHF 17 billion (USD 16 billion), compared to CHF 19.5 billion (USD 18.8 billion) for the 2009 financial year.
Income totalled CHF 384.4 million (USD 355.9 million) for this half of the year, compared to CHF 418.8 million (USD 387.7 million) for the same period in 2009. The Bank has kept its overheads under control, reducing its operating expenses by more than 2% to CHF 246.4 million (USD 228.1 million), compared to CHF 251.9 million for the first half of 2009 (USD 233.2 million). The consolidated cost/income ratio for the Group was 69% after depreciation.
Solid financial foundations
The balance sheet totalled CHF 18.4 billion (USD 17 billion) and the annualised return on equity was 12% for the first half of the year. The balance sheet remains stable and is marked out by its very high level of liquidity. Continued conservative risk-management is allowing UBP to maintain its solid financial foundations, producing a strong and debt-free balance sheet. UBP has a Tier 1 capital ratio of 26.6% - well above the legal minimum - making it one of the best-capitalised banks in Switzerland.
The global economy is undergoing a fundamental transformation with the centre of world growth shifting towards Asia. UBP continues to reflect this trend in the implementation of its global strategy both in terms of its long-term commitment to clients and the strengthening of its financial expertise. Michel Longhini's arrival as Managing Director of its Private Banking division represents the last major appointment to UBP's Executive Committee, following those of Richard Wohanka as CEO of Asset Management, Eftychia (La) Fischer as Head of Treasury & Trading and Ian Cramb as Chief Operating Officer. With this team in place, UBP is well positioned to grow its business in this challenging but exciting environment.
About Union Bancaire Privée
Union Bancaire Privée (UBP) is based in Geneva and is one of Switzerland's leading private banks. Active in the field of asset management for both private and institutional clients and with a very solid balance sheet, the Bank had more than CHF 72 billion (USD 66.5 billion) in assets under management as at 30 June 2010. UBP employs around 1,200 people in some twenty locations worldwide and provides a complete range of products and innovative investment solutions, both in traditional and alternative asset management, with the aim of seeking out performance and attaining its clients' objectives. www.ubpbank.com.
Contact:
Jérôme Koechlin
Head of Communications
Tel.: +41/58/819'26'40
E-Mail: jko@ubp.ch
Internet: www.ubpbank.com