Union Bancaire Privée had a tough time last year – and it shows in its full-year result. Paying for the settlement with the U.S., integrating the international business of Coutts and a difficult market almost wiped out the bank's profit in 2015.
Union Bancaire Privée (UBP), the Geneva-based private bank, had a profit of 25.2 million Swiss francs in 2015, the company said in a statement today. Operating profit declined to 152 million francs from 163 million a year earlier.
The bank's profit was almost wiped out by the cost (17.3 million francs) of integrating the business of Coutts (in Europe, Middle East and Africa) as well as the fine imposed for helping U.S. citizens stash away untaxed assets on its accounts ($188 million).
Assets Under Management Rise
The bank's assets under management rose 12 percent to 110 billion francs last year, helped by net inflows from institutional clients and from Coutts customers.
Total net inflows amounted to 15.7 billion, which compensated the impact of market volatility and the strong Swiss franc, the combined impact of which was estimated at about 4 billion.
Well Capitalized
After the acquisition of the Coutts business, UBP has a Tier 1 ratio of 24 percent, well above the minimum required by Basel III and the banking regulator Finma.
UBP remains one of the best-capitalized banks, with the means to further develop its wealth management business for both private and institutional clients.
