Union Bancaire Privee's first-half results can be described as stable in the face of challenges, and reflect the cautious attitude of its clients.
Geneva-based wealth manager UBP reported a pre-tax operating profit of 138 million Swiss francs ($159 million) for the first half of the year, up slightly from 136.9 million a year ago, with revenues falling 0.7 percent to 616.4 million francs, according to a statement. Net profit was 110.8 million compared with 112.6 million a year before, a 1.6 percent decline.
At the end of June, UBP held 140.6 billion francs of assets under management, which is marginally higher than the 140.4 billion francs at the end of last year. Although rising asset prices contributed 4.2 billion francs, that was offset by 3.5 billion francs due to the appreciation of the Swiss currency against the dollar.
«The first half of the year was marked by the strength of the Swiss franc, high inflation, and rapidly rising interest rates. Although global markets have recovered, clients tend to have a 'wait-and-see' attitude. It is our role to be alert to opportunities across all markets, and to present suitable solutions to our clients wherever they are,» said CEO Guy de Picciotto.
Rate Hike Support
Revenues fell to 616.4 million francs in the year's first half from 620.9 million francs in the first half of 2022. Fee and commission income fell 12.5 percent primarily due to lower brokerage activities. Net interest margin was up 62.6 million, gaining over 43 percent, supported by recent rate hikes.
Visiting More Clients?
Operating expenses at 414.8 million francs were broadly in line with the previous year’s figure of 411.7 million francs, with the gain attributed as the direct result of a pick-up in business travel.
The Tier 1 ratio of 27.3 percent and the short-term liquidity coverage ratio (LCR) of 262 percent reflect the quality of the Bank’s balance sheet and its financial strength, as also reconfirmed by the Aa2 long-term deposit rating issued by Moody’s, the statement said.
