Financial Results
Net Earnings, AuM Rise At Union Bancaire Privée; Warns About Swiss Franc Surge

UBP logged an 8.6 per cent year-on-year rise in net earnings for 2014 of SFr165 million ($183.2 million), while it warned that results this year will be hit by the surge in the Swiss franc.
Geneva-headquartered Union Bancaire Privée, which has operations in regions such as Asia, has logged an 8.6 per cent year-on-year rise in net earnings of SFr165 million ($183.2 million) for 2014, while it warned that results this year will be hit by the surge in the Swiss franc.
The banking group said assets under management stood at SFr98.7 billion at the end of 2014, a rise of 12.5 per cent from a year before.
UBP said its balance sheet was “highly stable,” with a Tier 1 ratio of 29 per cent.
Margins are healthy, it said, pointing to a cost/income ratio of 67.1 per cent.
“Net inflows from clients totalled SFr4.5 billion, a reflection of our ability to develop high-performing products and investment solutions that are greatly appreciated by our clientele," Guy de Picciotto, UBP's chief executive, said.
"The SNB's recent decision to abandon the cap against the euro and reinforce its negative interest rates policy will have an adverse impact on our foreign currency income in 2015 and therefore compels us to look at our income forecast for 2015 and to factor in some adjustments,” de Picciotto, said.
The rise in assets under management was driven by rising markets, the integration of Lloyds' private banking business in Monaco and new business from UBP’s institutional clients division. The private bank enjoyed “significant new capital inflows from growth markets, notably from the Middle East”, it said.
Revenue for the year reached SFr774 million, up from SFr694 million at the end of 2013, boosted by both an increased net interest margin and an improvement in net fees and commissions (up by 11.5 per cent and 12.4 per cent respectively).