Strong growth in net new money
Net new money during the first half of 2018 amounted to CHF 2.7 billion, leading to total assets under management reaching CHF 128.4 billion at the end of June 2018, compared with CHF 125.3 billion at the end of December 2017. This was a result of inflows from both private and institutional clients, particularly in Asia and Europe.
Operating revenues grew by 6.0%, rising from CHF 509.6 million in the first half of 2017 to CHF 540.0 million at the end of June 2018. In a more volatile market environment, the decrease in brokerage fees, caused by fewer client transactions, was offset by a rise in management fees from assets managed in funds, as well as discretionary and advisory mandates, together now accounting for over 60% of assets under management.
Operating expenses of 341.0 million at the end of June 2018 were up slightly from CHF 323.7 million a year earlier. This increase was mainly the result of new hires in the first half of the year, as well as investments in IT and digital. The cost/income ratio of 63.1% continues to demonstrate that costs and margins are managed both efficiently and effectively.
The Tier 1 ratio, which rose to 28.2% at the end of June, remains well above the minimum requirements stipulated under Basel III and by the FINMA. The Bank’s solid financial base can also be seen in its excellent short-term liquidity ratio, which stands at 290.4%.
“These results reflect our teams’ dynamism and our ability to meet clients’ expectations in a more difficult market environment. We continue to invest in our priority markets, as well as expanding our offering of innovative solutions to private and institutional clients,”
explains Guy de Picciotto, UBP’s CEO.