UBP’s H1 2022 Profit And Revenue Rise

Amanda Cheesley

19 July 2022

has reported a net profit of SFr12.6 million ($115.4 million) for the first half of 2022, up 12.4 per cent from SFr100.2 million a year earlier.

Revenues have also increased by 10.5 per cent, driven by a higher net interest margin and recent acquisitions, the bank said

This increase resulted from a higher net interest margin (up SFr42.7 million) following the recent rate hikes, as well as the addition of the Millennium Banque Privée business in late 2021 and Danske Bank International in 2022, the firm said.

Revenues from trading – principally forex – grew sharply during the period (by SFr16.5 million) and helped to compensate for the decline in trading activity among private clients.

Operating expenses totalled SFr411.7 million in the first half of 2022 compared with SFr372.7 million in the first half of 2021, the bank added. This 10.5 per cent rise was the direct result of recent acquisitions and investments, particularly the recruitment of several teams for priority markets and the expansion of the bank’s investment offering.

Nevertheless, UBP’s assets under management amounted to SFr148.2 billion at the end of June 2022, down 7.6 per cent compared with the end of December 2021. This SFr12.2 billion decrease arose from the sharp correction in financial markets during the period, the bank said.

Net new money, meanwhile, was positive at SFr3.4 billion, driven in particular by the acquisition of Danske Bank International, completed in the first quarter, which offset outflows among existing clients, mainly institutional investors.

UBP’s Tier 1 ratio of 23.2 per cent at the end of June 2022, along with its short-term liquidity coverage ratio of 286.5 per cent, illustrates the quality of its balance sheet and financial strength, as confirmed by Moody’s decision to maintain its Aa2 long-term deposit rating, the bank said.

“The sharp correction in financial markets and the upturn in volatility since the start of the year directly affected both our asset base and brokerage activity among our clients,” UBP’s CEO Guy de Picciotto explained.

“However, higher interest rates and favourable movements in exchange rates, particularly the rise in the dollar, enabled UBP to achieve good results. At a time of major uncertainty arising from the conflict in Ukraine and inflation risks, we must show agility and adjust our offering in order to address client concerns, as well as being ready to invest again when the time is right,” he added.

Based in Geneva, UBP specialises in wealth management for both private and institutional clients.