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January 28, 2011updated 04 Apr 2017 3:51pm

UBP FY10 profit flat, AuM’s down 14% YOY

UBP said that the annual results were affected by the $500m settlement it agreed to pay to Irving Picard, the trustee seeking compensation for defrauded investors in Bernard L Madoff Investment Securities, to settle claims it invested in the fraudulent business.

By Duygu Tavan

Union Bancaire Privée’s (UBP) full year net profit remained unchanged from the prior year at CHF216m ($230m) with assets under management (AuM) dropping 14% to CHF65bn since year end 2009.

UBP said that the annual results were affected by the $500m settlement it agreed to pay to Irving Picard, the trustee seeking compensation for defrauded investors in Bernard L Madoff Investment Securities, to settle claims it invested in the fraudulent business.

 

Assets under management down 35% since 2008

The bank has recorded a steady fall in AuM since the onset of the financial crisis. AuM have fallen 35% from CHF100bn since fiscal 2008.

UBP said its growing focus on emerging markets and related investments and strategies, as well as unfavourable exchange rates, had a negative effect on AuM in 2010.

 

Confident about 2011 and beyond

Despite the fall in AuM, the Swiss private bank said it remained confident in its future outlook, adding that flat net profit was a result of new strategies it has been implementing since 2008.

These include rolling out a new range of in-house managed investment funds, including 15 products, for its asset management business in emerging markets.

 

Focus on emerging markets

The bank has shifted its focus on emerging markets since 2008, in particular to the Middle East, Asia, Eastern Europe and Latin America.

But UBP said it remains focussed on growing its onshore client base in Europe at the same time.

The bank said it expects its investments since 2008 to crystallise in 2011 and grow its business in emerging markets.

 

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