Opalesque Industry Updates - Union Bancaire Privée (UBP) announced a net profit of CHF 216 million (USD 209 million) for the 2009 financial year. Assets under management totalled CHF 75 billion (USD 72 billion) as at 31 December 2009, against CHF 100 billion (USD 95 billion) at the end of 2008, as a result of the contraction in the institutional and alternative-asset-management industries and the adverse effects of exchange rates.|
These results were partially offset by the CHF 6.7 billion (USD 6.5 billion) in net capital inflows from private clients, with a significant proportion from emerging markets. Due to the careful management of risk and of the balance sheet, UBP continues to enjoy a solid financial base and a Tier 1 ratio of 26.4%.
“Our ability to adapt has allowed us to maintain our profit margins in markets that remain unstable”, underlines Guy de Picciotto, UBP’s CEO. “In the first half of the year, we concentrated on preserving our clients’ capital and reducing costs. Subsequently, we redeveloped our business activity by reinforcing our management and strengthening our risk-management abilities. We adapted our business model so that it now includes four main divisions: Private Banking, Asset Management, Treasury and Operations.”
Maintaining profit-earning capacity
Income was at CHF 806 million for the year, versus CHF 1.15 billion in 2008. Trading income stood at CHF 138 million (versus CHF 114 million for the previous year), which represents a 21% rise, reflecting favourable market conditions. Costs were brought under control in all sectors, allowing operating expenses to be reduced by more than 11% to CHF 498 million (versus CHF 561 million for 2008). The Group’s consolidated cost/income ratio is 66.9% after amortisation. Adequate provisions for matters associated with the fraud perpetrated by B. Madoff were made.
Healthy balance sheet and a solid financial base
A reformed business model
As a global asset manager, UBP is committed to providing innovative investment solutions which are adapted to this new environment and committed to the highest levels of service quality and transparency. The synergies that have been created by this dynamic reorganisation are allowing UBP to face the future with confidence and to continue to seize the best investment opportunities for its clients. Corporate website: www.UBP.ch