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Annual results 2023
- UBP's net profit reached CHF 223.8 million in 2023, up 6.4% from CHF 210.4 million in 2022
- The operating result amounted to CHF 269.2 million, reflecting an increase of 11.6% compared with the previous year's figure of CHF 241.2 million
- Total income rose by 1.1% to CHF 1.227 billion
- Assets under management totalled CHF 140.0 billion
- The Bank's Tier 1 capital ratio stood at 28.9%
GENEVA, Jan. 22, 2024 /PRNewswire/ -- UBP's assets under management (AuM) remained stable in Swiss francs, at CHF 140.0 billion (140.4 billion at the end of 2022). The positive effect from a market impact of CHF 7.6 billion and net new money of CHF 2.9 billion was completely offset by the negative impact of the Swiss franc's appreciation against the main currencies, especially the US dollar. Expressed in US dollar terms, UBP's AuM grew by 9.7% (USD 166.4 billion vs 151.7 billion at the end of 2022).
The Bank's total income stood at CHF 1.227 billion, which represents an increase of 1.1% compared with CHF 1.213 billion in 2022. The slowdown in net fees and commissions income (-7.2%), due to reduced brokerage activity among private clients and to the decline in profit on trading operations including forex (-11.5%), was compensated by robust net interest income, which increased by CHF 81.1 million (+25.3%), driven by recent rate hikes.
Operating expenses remained flat at CHF 832.8 million (+0.8%) and were directed towards recruitments and investments in technology, among other purposes. The operating result reached CHF 269.2 million, reflecting an increase of 11.6% from CHF 241.2 million in 2022.
The Bank's net profit for 2023 came in at CHF 223.8 million, up 6.4% from CHF 210.4 million a year earlier, resulting in an operating cost/income ratio of 67.9% (compared with 68.1% for 2022).
With a stable balance sheet of CHF 37.4 billion as at the end of December 2023, UBP has the means to continue implementing its organic and external development plan. The Bank's Tier 1 capital ratio rose to 28.9% (vs. 26.7% at the end of 2022) and remains well above the minimum requirement under FINMA regulations and the Basel III accords. The short-term liquidity coverage ratio (LCR) of 313.9% and Moody's decision to maintain its Aa2 long-term deposit rating underscore UBP's financial strength.
"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. Our main focus remains to offer our clients, both private and institutional, the best investment management products and services around the world. With this in mind we made a number of new hires in 2023, in Asia and Switzerland, and we have invested significantly in our portfolio management capabilities. 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," states UBP's CEO, Guy de Picciotto.
About Union Bancaire Privée (UBP)
UBP is one of Switzerland's leading private banks, and is among the best-capitalised, with a Tier 1 capital ratio of 28.9%. The Bank is specialised in the field of wealth management for both private and institutional clients. Headquartered in Geneva, UBP employs 2,094 people in over twenty locations worldwide and holds
CHF 140.0 billion in assets under management (numbers as at 31 December 2023).
