Swiss private bank Union Bancaire Privée released positive financial results for 2024.

Geneva-headquartered Union Bancaire PrivĂ©e yesterday reported a group profit of SFr257.4 million ($285.57 million) in 2024, marking an increase of 15 per cent from the SFr223.8 million achieved in 2023.

The bank’s total income for the year was SFr1.342 billion, representing growth of 9.4 per cent compared with SFr1.227 billion in 2023, the bank said in a statement. This rise was fuelled by a 5 per cent increase in fees and commissions driven not only by the rise in client assets but also by heightened brokerage activity among private clients, particularly in structured products. The rise in income was also achieved thanks to the net result from interest operations increasing by SFr81.4 million (+20.3 per cent), reflecting the relevance of its interest rate hedging strategy.

Client assets grew by 10.3 per cent to SFr154.4 billion at the end of December 2024, compared with SFr140.0 billion at the end of 2023, reflecting the strong performances of the bank’s investment solutions supported by global financial markets, as well as a positive exchange rate impact, it said. Net new money from private clients (SFr+1.7 billion) was largely offset by outflows from large institutional clients taking profits, as well as the termination of partnerships with external fund managers.

Operating expenses rose to SFr908.9 million (+9.1 per cent), due to the bank’s recruitment efforts in 2024, substantial investments in technology, and costs related to the acquisitions of SociĂ©tĂ© GĂ©nĂ©rale Private Banking (Switzerland) and SG Kleinwort Hambros last year.

The cost/income ratio held steady at 67.7 per cent.

With a balance sheet of SFr40.9 billion as at the end of December 2024, UBP said it has the financial foundations for growth. 

The Group’s Tier 1 capital ratio remained stable at 28.9 per cent, above the minimum requirement under FINMA regulations and the Basel III accords.

“Our solid results clearly demonstrate UBP’s ability to offer our private and institutional clients attractive investment solutions as well as the best quality of service. Client activity levels and net interest income remained strong in 2024, supported by a favourable financial environment,” UBP’s CEO, Guy de Picciotto, said. “We continued to invest in our operations and infrastructure to meet the requirements of an increasingly complex regulatory environment. We also mobilised our resources to prepare for the integration of our two latest acquisitions, expected at the end of January in Switzerland and at the end of March in the UK, which will enable us to further expand our offering to clients thanks to the complementary strengths of our teams.”