Swiss bank Union Bancaire Privée, UBP SA (UBP) has announced a 12% year-on-year rise in its assets under management to CHF80bn as at 31 December 2012, against CHF72bn at the end of 2011.
This increase is the result of net inflows of funds from private and institutional clients, sound asset management performances and several acquisitions, the bank said as it reported its annual results.
The UBP Group’s net consolidated earnings came in at CHF175m, practically level with the 2011 figure of CHF176m (-0.6%). The operational integration of ABN Amro Bank (Switzerland) AG became effective on 31 May 2012 and the synergies only took place in the second half of the year.
The Bank said it has maintained a strong financial base thanks to its cautious approach to risk-management and its close watch on the balance sheet. With its Tier 1 ratio of 24% it is one of the best-capitalised Swiss banks.
CEO, Guy de Picciotto, said: “These positive results for 2012 are attributable to the efforts we have made over several years to win the trust of our private and institutional clients, while contending with the changing regulatory framework both in Switzerland and abroad and the consolidation of the finance industry”.
The year’s income was CHF691m against CHF763m a year earlier, due to the fall in the interest margin to CHF153m against CHF163m in 2011, and in trading income to CHF99m. Incoming fees and commissions, at CHF435m posted a CHF15.5m increase on 2011.
Operating expenses, taking into account integration costs, were up +0.2% compared with the previous year at CHF509m. The Group’s consolidated cost/income ratio was 74% because of the integration expenses.
In 2012 UBP also saw the integration of the three acquisitions it made in 2011 and 2012, which it said have enabled it to strengthen its positioning on key markets. A new division specialises in alternative investments and its restructured Asset Management division will continue broadening its range of products aimed at both private and institutional clients.
UBP has also expanded its commercial capacity, especially in Asia and in the Middle East.