- Assets under management grew to CHF 160.4 billion at the end of 2021, CHF 13 billion higher than in 2020 (+8.8%).
- Revenue rose by 5.9% to CHF 1.134 billion.
- Operating income increased by 11.1% and net earnings were CHF 201.2 million, up from CHF 181.4 million the previous year (+10.9%).
Growth in assets under management, supported by positive markets and strong management performances
Assets under management at UBP rose by 8.8% to CHF 160.4 billion, thanks to strong performances in its mandates and funds at a time of favourable market conditions, as well as substantial net capital inflows of CHF 5.7 billion. This net new money comes mainly from growth markets, but in particular Asia, the Middle East and Eastern Europe, as well as from the acquisition of Millennium Banque Privée, which was finalised in the last quarter of the year.
Revenue was 5.9% higher than in 2020, at CHF 1.134 billion, boosted in part by an increase in commissions (+10.6%), which made up for the shrinking net interest margins (-7.5%) in the current low interest rate environment.
Operating expenses totalled CHF 754.5 million, rising by 5.0% (CHF 718.4 million in 2020). This increase reflects the substantial investments UBP has made in strengthening its sustainability and responsible investing expertise and offering, but also in the recruitment of new teams. Part of the increase is also due to the costs of the recent acquisitions.
Operating income increased by 11.1%, and net earnings reached CHF 201.2 million, an increase of 10.9% compared with 2020 (CHF 181.4 million). The cost/income ratio improved to 66.5% (compared with 67.1% in 2020).
“In a context marked with multiple uncertainties we continue to expand in our areas of expertise and strengthen our footprint in our priority markets, by implementing our strategy of acquisitions and targeted recruitments. We have made substantial investments in order to develop management solutions that match the prevailing market conditions but also those to come in future years, while at the same time aiming to make UBP a major player in sustainable finance,” states UBP’s CEO Guy de Picciotto.
Firm fundamentals
UBP continues to have the means to allow it to develop in both Switzerland and abroad, with a balance sheet total of CHF 38.8 billion as at the end of December 2021 (up from CHF 37.8 billion in 2020). Its Tier 1 ratio, at 25.2%, is well above the minimum requirement under the Basel III accords and FINMA regulations. Its short-term liquidity coverage ratio (LCR) stands at 274.5%.
These ratios reflect UBP’s solid financial base, as well as the quality of its balance sheet, demonstrated by the long-term deposit rating of Aa2 assigned by Moody’s.
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