Geneva-based Union Bancaire Privée’s profit climbed higher in 2023, driven by the recent rise in interest rates.
UBP posted a net profit of 223.8 million Swiss francs ($257.9 million) in 2023, according to a statement, up 6.4 percent year-on-year.
Total income grew 1.1 percent to 1.2 billion francs with a decline in net fees and commissions income as well as profit from trading operations being offset by net interest income, which surged 25.3 percent to 81.1 million francs due to recent rate hikes. Operating expenses were flat at 832.8 million (0.8 percent increase).
AUM: FX Impact
Assets under management (AUM) were stable at 140 billion francs, compared to 140.4 billion francs at end-2022. Positive market impact and net new money of 7.6 billion francs and 2.9 billion francs, respectively, were completely offset by the negative impact of the Swiss franc’s appreciation against other currencies, most notably the US dollar.
In dollar terms, UBP’s AUM grew by 9.7 percent to $166.4 billion.
Asia and Swiss Hires
According to UBP CEO Guy de Picciotto, the Geneva-based private bank made a number of new hires in Asia and Switzerland in 2023 while also investing significantly in its portfolio management capabilities.
«Despite the negative exchange rate effects, with more than half of our client asset base denominated in dollars, we have achieved resilient results, reflecting our capacity to grow internationally,» he said. «While 2024 will remain volatile, we can rely on the commitment of our teams and our distinctive offering to strengthen our footprint in our priority markets.»
