Swiss private bank Union Bancaire Privée (UBP) reported a 15% rise in group profit to Swiss franc (CHF) 257.4 million for 2024, driven by strong client asset growth, higher brokerage activity, and an effective interest rate hedging strategy.
UBP is headquartered in Geneva and specialises in wealth management for private and institutional clients.
UBP’s total income reached CHF 1.342 billion, a 9.4% increase from 2023. This growth was fuelled by a 5% rise 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 net result from interest operations grew by 20.3%, reflecting the success of its interest rate management strategy.
Client assets surged 10.3% to CHF 154.4 billion by the end of 2024, benefiting from strong investment performance, favorable market conditions, and a positive exchange rate impact. While net new money from private clients totalled CHF 1.7 billion, outflows from institutional clients taking profits and the termination of external fund manager partnerships partially offset this growth.
UBP sees increase in net profits despite impact on inflows by US dollar
Operating expenses rose 9.1% to CHF 908.9 million, driven by UBP’s ongoing recruitment efforts, substantial technology investments, and costs associated with the acquisitions of Société Générale Private Banking (Switzerland) Ltd and SG Kleinwort Hambros. Despite this, the operating result increased by 16% to CHF 312.4 million, maintaining a stable cost/income ratio of 67.7%.
UBP’s Tier 1 capital ratio remained “stable” at 28.9%, exceeding regulatory requirements, while its liquidity coverage ratio (LCR) rose to 351.3%, further underlining the Bank’s financial resilience. Moody’s decision to maintain its Aa2 long-term deposit rating reinforces UBP’s solid standing in the financial sector, according to the bank.
“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. 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.” said UBP’s CEO, Guy de Picciotto.
