Asset manager Union Bancaire Privée made a net profit of CHF216m (USD209m) for the 2009 financial year.
Assets under management totalled CHF75bn (USD72bn) as at 31 December 2009, against CHF100bn (USD95bn) at the end of 2008, as a result of the contraction in the institutional and alternative asset management industries and the adverse effects of exchange rates.
These results were partially offset by the CHF6.7bn (USD6.5bn) in net capital inflows from private clients, with a significant proportion from emerging markets.
“Our ability to adapt has allowed us to maintain our profit margins in markets that remain unstable,” says Guy de Picciotto, UBP’s chief executive. “In the first half of the year, we concentrated on preserving our clients’ capital and reducing costs. Subsequently, we redeveloped our business activity by reinforcing our management and strengthening our risk-management abilities. We adapted our business model so that it now includes four main divisions: private banking, asset management, treasury and operations.”
Income was at CHF806m for the year, versus CHF1.15bn in 2008. Trading income stood at CHF138m versus CHF114m for the previous year, which represents a 21 per cent rise, reflecting favourable market conditions.
Costs were brought under control in all sectors, allowing operating expenses to be reduced by more than 11 per cent to CHF498m versus CHF561m for 2008.
The balance sheet total reached CHF20bn and the return on shareholder equity for the 2009 financial year is 12 per cent. Liquidity has risen from CHF1.6bn in 2008 to CHF6.8bn in 2009, while amounts due to clients remain almost unchanged at CHF16.3bn.