In 2023, UBP’s net profit climbed to CHF223.8m ($257.7m) up 6.4% from CHF210.4m ($242.3m) in 2022.
The beneficial result of CHF7.6bn in market impact and CHF2.9bn in net new money was negated by the adverse effect of the Swiss franc’s strengthening against the other currencies, particularly the US dollar.
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According to US dollar values, UBP‘s AuM increased by 9.7% ($166.4bn as of the end of 2022).
The bank’s overall revenue for 2022 was CHF1.227bn, up 1.1% from CHF1.213bn in 2022.
However, the decrease in net fees and commissions income (-7.2%), caused by reduced brokerage activity among private clients and a drop in profit on trading operations including forex (-11.5%), was offset by strong net interest income, which rose to CHF81.1 million (+25.3%), owing to recent rate hikes.
In addition, operating expenses were steady at CHF832.8m (+0.8%) and went toward hiring staff and technology investments, among other matters.
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By GlobalDataOperating profit was CHF269.2m, up 11.6% from 2022’s CHF241.2m.
After a 6.4% increase in net profit to CHF223.8m in 2023 from CHF210.4m in 2022, the bank’s operational cost/income ratio was 67.9% in 2023 (as opposed to 68.1% in 2022).
UBP has the resources to carry out its organic and external expansion plan, as reflected by its steady balance sheet of CHF37.4bn as of the end of December 2023.
After increasing to 28.9% at the end of 2022 from 26.7%, the bank maintained a Tier 1 capital ratio significantly above the minimum stipulated by the Basel III accords and FINMA regulations.
Moody’s decision to keep UBP’s long-term deposit rating at Aa2, along with the company’s short-term liquidity coverage ratio (LCR) of 313.9%, demonstrate UBP’s strong financial position.
Furthermore, UBP’s CEO, Guy de Picciotto commented: “Despite the negative exchange rate effects, with more than half of our client asset base denominated in dollars, we have achieved resilient results, reflecting our capacity to grow internationally. Our main focus remains to offer our clients, both private and institutional, the best investment management products and services around the world. With this in mind we made a number of new hires in 2023, in Asia and Switzerland, and we have invested significantly in our portfolio management capabilities. While 2024 will remain volatile, we can rely on the commitment of our teams and our distinctive offering to strengthen our footprint in our priority markets.”
