Union Bancaire Privée announces Net Inflows of nearly CHF9 billion and an Increase in Assets Under Management to CHF147.4 billion
Union Bancaire Privée (UBP) has announced that the firm’s assets under management totalled CHF147.4 billion at the end of 2020, up by CHF7.1 billion, representing an increase of 5.1%. Net inflows doubled compared with the year prior, says the firm, to CHF8.97 billion, representing 6.4% of assets under management.
Income remained stable at CHF1.071 billion, reported the firm in a press release, despite the significant fall in net interest margins. The operating result improved by 8.7% and net profit was CHF181.4 million, compared with CHF187.8 million in 2019, a year which included an exceptional gain from a real estate transaction.
Asset growth sustained by significant client inflows across all markets
Assets under management at UBP rose by 5.1% to CHF147.4 billion. Net new money (up CHF8.97 billion) came essentially from private clients in the Bank’s main markets (Switzerland, the UK, the Middle East, Europe and Asia), and benefited from a solid performance in both funds and mandates. These large inflows offset the negative exchange rate effects (CHF7.3 billion) over the year.
Income remained stable at CHF1.071 billion (+0.4%), despite a significant deterioration in net interest margins due to the decline in US rates. However, this fall (CHF74.6 million) was fully compensated for by an increase (CHF58.8 million, 8.7%) in income from fees and commissions – linked to the increase in assets under management and a high level of client transaction volumes – as well as by steady returns in forex and trading (CHF22.9 million, +27.3%).
Operating expenses decreased slightly (-0.9%) to CHF718.4 million, even taking into account the substantial investments made throughout the year. The bank invested in digital capabilities, particularly communication tools and technology that allowed it to successfully maintain business continuity throughout the health crisis, and in new team hires in key growth markets.
The operating result increased by 8.7% despite the uncertain and difficult environment, while net profits were 3.4% lower than in 2019 (1.9% higher if excluding the previous year’s one-off gain). Profits were CHF181.4 million, down from CHF187.8 million the previous year, when the exceptional gain following the sale of a building in London was booked. The cost/income ratio remained stable at 67.1% (compared with 67.9% in 2019).
Guy de Picciotto, CEO, UBP, said: “These results demonstrate the confidence our clients have in both UBP and the Swiss financial centre. Our teams’ adaptability and proactivity have enabled us to keep offering appropriate investment solutions in this unprecedented context, while maintaining high-quality services for all our clients worldwide. We are determined to continue to invest and expand our presence in our key markets.”
Strong fundamentals
UBP reports that it has the means to continue its development both in Switzerland and abroad, having a balance sheet of CHF37.8 billion as at the end of December 2020 (up from CHF32.8 billion in 2019), and a Tier 1 ratio of 27.7%, well above the minimum requirements of the Basel III accords and FINMA regulations. Its short-term liquidity coverage ratio (LCR) stands at 307.5%.
These ratios reflect UBP’s solidity and the quality of its balance sheet, as attested by its long-term Aa2 deposit rating assigned by Moody’s, the press release concluded.
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