Union Bancaire Privée's annual profits fell on the year – the Swiss wealth boutique invested heavily in growth.
Profits at Union Bancaire Privée (UBP) fell 7 percent to 188 million Swiss francs ($194.2 million), the Geneva-based private bank said in a statement on Wednesday. Revenue held steady on the year, while spending rose sharply.
The Swiss bank hoisted its asset base by 11 percent to 140 billion francs; net inflows of client money totaled 4.5 billion francs. UBP couldn't manage to convert the inflows into revenue: CEOGuy de Picciotto cited negative interest rates in Switzerland among the factors challenging UBP at the moment.
Splashing Out
Elsewhere, UBP invested in London and in Luxemburg with Banque Carnegie, as well as splashing out for digital projects. Headcount edged slightly lower, though spending on personnel rose. Its overall costs rose 4 percent to 725 million francs, while its cost-income ration climbed to 67.9 percent from 65.8 percent in 2018.
De Picciotto, the son of founder Edgar de Picciotto, said new market entrants and digitization are keeping UBP on its toes. He cited the bank's launch of a private market investment business as a success in terms of diversifying and innovating its traditional business.
