Profits at Union Bancaire Privée rose by more than 20 percent in the first six months. However, the acquisition of Coutts International came at a price.
Net profit at the Geneva-based bank stood at 109.5 million Swiss francs as of June 30, which is nearly 22 percent higher than the 89.9 million francs a year earlier, the bank said in a press release.
Income rose 12.5 percent year to 509.5 million francs. But spending also rose sharply: expenses surged nearly 10 percent to 323.7 million francs.
This was mainly due to the integration of Coutts in Asia, finalised last April.
Higher Asia Spending
Fixed costs in Asia's wealth hubs of Singapore and Hong Kong are notoriously high, something UBP will need to monitor carefully.
The growth in commissions of more than 10 percent, although helped by the strength of the markets, also attests to the rising amount of private client assets in advisory mandates.
Asset management won inflows totaling 1.6 billion francs, offsetting outflows resulting from the latest wave of tax regularisation programmes.
Steady Assets
Several countries in Europe and Latin America have offered leniency programs to bring tax evaders – and their lost tax money – back home.
«The numbers from the first half of the year reflect the substantial investments we have recently made in strengthening our teams and demonstrate the dynamism of our activities in Asia,» said Guy de Picciotto UBP’s CEO.
UBP's cost-income ratio stood at 63.5 percent before depreciation and provisions, an improvement from nearly 68 percent at year-end. The bank's assets under management now stand at 118.9 billion francs, steady from year-end.
