Strong operational activity boosts results
Operating revenues grew by 12.5% year on year, from CHF 452.9 million at mid-year 2016 to CHF 509.5 million at the end of June 2017. The net interest margin increased by 18.5% to CHF 139.3 million supported, among other factors, by higher US dollar interest rates. The growth in commissions of more than 10%, although helped by the strength of the markets, also attests to the rising amount of private client assets in advisory mandates.
Operating expenses increased by 9.9% between June 2016 and June 2017, rising from CHF 294.5 million to CHF 323.7 million, due to the integration of Coutts in Asia which was finalised in April 2016. Strong cost management enabled UBP to improve its cost/income ratio (excluding depreciation and provisions), to 63.5% at the end of June 2017, compared with 67.9% at the end of December 2016.
Operating profit was CHF 133.7 million at the end of June, up from CHF 110.5 million a year earlier – an increase of CHF 23 million (21.2%).
Assets under management remained stable at CHF 118.9 billion (CHF 118.3 billion at the end of 2016). Strong performance of those assets, underpinned by favourable market conditions, made up for the negative effects of exchange rates during the first half of the year (CHF -3.3 billion). The Asset Management division continued to grow organically, with inflows totalling CHF 1.6 billion at the end of June. These inflows offset the outflows resulting from the latest wave of tax regularisation programmes, mainly impacting European and Latin American private clients.
The Tier 1 ratio, at 26%, remains well above the minimum requirement stipulated under Basel III and by the FINMA.
“The numbers from the first half of the year have been very encouraging. While we have benefited from positive market movements, the hard work and dedication of our teams in offering our clients innovative solutions have played a significant role in achieving this set of results. They also reflect the substantial investments we have recently made in strengthening our teams and demonstrate the dynamism of our activities in Asia,” said UBP’s CEO, Guy de Picciotto.