Opalesque Industry Update - Union Bancaire Privée achieves net profits of CHF 216 million
as it implements its new Private Banking and Asset Management strategies |
Union Bancaire Privée (UBP) achieves net profits of CHF 216 million (USD 230 million) for the 2010
financial year as it implements its new strategies for Private Banking and Asset Management.
For the 2010 financial year, UBP’s consolidated net profit reached CHF 216 million (USD 230 million), identical to 2009. As at 31 December 2010, assets under management came to CHF 65 billion (USD 69 billion), versus CHF 75 billion at the end of 2009. These were mainly affected by negative exchange-rate effects.
Revenues were CHF 766 million (USD 816 million) for the year versus CHF 806 million for 2009. Interest income remained almost unchanged at CHF 162 million versus 166 million in 2009. Trading came in at CHF 195 million (USD 208 million), boosted by particularly good market conditions.
Operating expenses remained firmly under control (-1%) at CHF 493 million (USD 525 million). This figure takes into account the investment made in reorganising the Asset Management division. The Group’s consolidated cost/income ratio was 65%.
Sound financial base
The balance sheet total reached CHF 18 billion (USD 19 billion), and the return on shareholder equity for the 2010 financial year was 12.8%. Overall, the balance sheet remained stable, with a high level of liquidity. By pursuing a conservative approach to risk-management, UBP has maintained a solid financial base and a strong balance sheet. With a Tier 1 capital ratio of 24.1%, UBP is one of the best-capitalised banks in Switzerland.
The 2010 results include the agreement the Bank reached with the US liquidator dealing with the bankruptcy of Bernard L. Madoff Investment Securities, which allowed UBP to bring a final close to this chapter.
Growing new markets
After two years of profound changes to the international financial and economic landscape, 2011 will see the crystallisation of all the Bank’s efforts. The aim of Private Banking is to develop growth markets, such as the Middle East, Asia, Eastern Europe and Latin America, and to grow its European onshore client base.
Asset Management has launched a new range of in-house managed investment funds with around fifteen products, carefully tailored to meet client needs and with a particular focus on emerging markets. As a global asset manager, UBP is committed to providing innovative investment solutions suited to the new market environment, with the highest levels of service quality and transparency.
With its good 2010 results, newly-recruited renowned experts and financial solidity, the Bank is facing the future with confidence as it continues to provide its clients with the very best investment services.