Union Bancaire Privee is a relative newcomer to Asian private banking. The Geneva-based bank's net new money growth in the region last year more than offset outflows in its European and Latin American activities.
Full-year profit at Union Bancaire Privee, or UBP, rose sharply to 176.4 million Swiss francs last year, as the Swiss private bank bolstered its profitability: its cost-income ratio improved to 67.9 percent, from 69.3 percent at the end of 2015.
That year, the family-run firm booked various one-time effects including 188 million francs to settle an industry-wide tax probe with U.S. prosecutors and 17.3 million francs to integrate Coutts' international private bank, which it acquired from the Royal Bank of Scotland, or RBS. Despite provisions, UBP's profit shrank to 25.2 million one year ago – they have now snapped back, as Tuesday's results illustrated.
The bank's assets under management rose 7.6 percent to 118.3 billion francs, from 110 billion in the previous year.
Asia Gains
The bank's strongest windfall came from integrating Coutts: the reorganization was concluded early last year, according to UBP's plan. The acquisition has given UBP a fillip in Asia, not only in traditional private banking, but also with more than 1 billion francs in net new money with institutional clients.
«The external growth strategy that we have had in place for four years now, and the major investments we have made in our Asset Management division, are both bearing fruit. We are well positioned in those markets where we want to grow. Our ability to adapt, and to offer our clients solutions that meet their needs locally, are key factors in our success,” said Guy de Picciotto, UBP’s CEO.
«This pleasing development compensated outflows linked to tax regularization measures in Europe and Latin America as well as adjustments made subsequent to the integration of Coutts International clients,» de Picciotto added.
Fees, Commissions Up
Revenue rose nearly 25 percent to 934.6 million francs on commissions and fees, largely linked to the bank's expansion in areas such as Asia, as well as robust growth in Europe and the Middle East, while spending rose less sharply – 22.2 percent – amid the integration of Coutts.
Pre-tax profit rose to 191.9 million francs, from 152 million, illustrating the bank's ability to clamp down on costs.
«The external growth strategy that we have had in place for four years now, and the major investments we have made in our Asset Management division, are both bearing fruit. We are well positioned in those markets where we want to grow,» de Picciotto said.
Founder's Death
The bank's healthy performance helped the bank's capitalization, buffeting the effects of integrating Coutts in Asia. UBP's key capital ratio was stable at 24.3 percent, well over international Basel requirements as well as those of Swiss regulator Finma.
The bank suffered a setback this year: founder Edgar de Picciotto (pictured above), one of Switzerland's most well-known bankers, died in March (obituary in German).
