Union Bancaire Privée (UBP), a renowned private bank based in Geneva, has reported a notable increase in earnings and staff recruitment over the past year. Despite facing volatility in the months ahead, UBP’s leadership remains optimistic about the future.
In 2023, UBP achieved a net profit of 223.8 million Swiss Francs, marking a 6.4% increase from the previous year. This growth is attributed primarily to a significant 25% rise in interest income. Despite a decline in private client trading activities and revenues from trading and foreign exchange transactions, leading to a 7.2% decrease in net commission and fee income, UBP’s performance has been strong.
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Stable Asset Management Amidst Currency Fluctuations
UBP managed assets worth 140 billion Swiss Francs, maintaining stability despite market fluctuations. Positive stock market conditions contributed 7.6 billion Swiss Francs, and net new money added another 2.9 billion. However, the appreciation of the Swiss Franc, particularly against the US dollar, neutralized these gains. Notably, about half of UBP’s client funds are evaluated in US dollars.
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Operational expenses rose slightly to 832.8 million Swiss Francs, driven mainly by recruitment and technological investments. UBP has been actively hiring in Switzerland and Asia. The bank’s cost-income ratio (CIR) improved marginally from 68.1% to 67.9% compared to the previous year.
Strong Foundation for Future Growth
With a robust balance sheet totaling 37.4 billion Swiss Francs at the end of 2023 and a solid Tier 1 capital ratio increase from 26.7% to 28.9%, UBP is well-positioned to continue its plans for organic growth and external expansion.
Looking Ahead with Confidence
Guy de Picciotto, CEO of UBP, views the future with a balanced perspective. “2024 is expected to be another volatile year, but we are confident in the dedication of our teams and our unique offerings to expand our presence in target markets,” he stated.
Conclusion
UBP’s successful navigation through challenging economic conditions highlights its resilience and commitment to growth. Despite the strong Swiss Franc’s impact, the bank’s strategic focus on interest income, efficient asset management, and investment in human and technological resources demonstrate its robustness in the financial sector.
About UBP
Union Bancaire Privée (UBP) stands as a testament to excellence in private banking. Based in Geneva and family-owned, UBP has established itself as a leader in the financial industry, known for its commitment to client security, innovative financial solutions, and a forward-thinking approach to global market challenges. With a clear vision for the future and a strong foundation in expert financial management, UBP continues to set benchmarks in the banking world.
