Union Bancaire Privee announces a net profit of CHF 202.4 million, and net asset inflows of more than 5%

GENEVA,Jan. 18,2019 --

UBP's net profit for the full year 2018 was CHF202.4 million (CHF209.4 million excluding non-recurring costs relating to acquisitions),compared with CHF220.4 million in 2017.

Net inflows of assets reached CHF7.3 billion (5.8% of total assets); CHF4.7 billion in net new money and CHF2.6 billion thanks to the integration of ACPI.

The Bank ended 2018 with CHF126.8 billion in assets under management,up 1.2% from CHF125.3 billion at the end of 2017,after a difficult year in the stock and currency markets.

A year marked by strong inflows and the acquisition of ACPI

Net asset inflows totalled CHF7.3 billion at the end of 2018,of which CHF4.7 billion in net new money,equally balanced between private and institutional clients,and CHF2.6 billion from the acquisition of ACPI,which was completed at the end of the year. This growth made up for the difficulties in the stock and currency markets,in particular the strength of the Swiss franc against the euro (which had a negative impact of CHF1.2 billion). UBP's assets under management reached CHF126.8 billion,a 1.2% year-on-year rise.

Incomerose by 1.6% to CHF1.06 billion. The interest margin grew sharply (+8.2%),while the slowdown in brokerage (-16%),due to the low volume of transactions in the second half of the year,was offset by the upturn in management and advisory fees. The proportion of clients with their assets managed in mandates or in funds has now increased to more than 60%.

Operating expensesamounted to CHF698 million for 2018 (versus CHF673.1 million in 2017). Costs remain under control (+3.7%) and are mainly attributable to non-recurring charges (CHF7.2 million) generated by the acquisitions of ACPI in London and Banque Carnegie Luxembourg (which is expected to be finalised at the end of January 2019),and to recruitments in Asia and the Middle East. Furthermore,UBP made substantial investments in the digital and IT arenas,most notably having entered into a partnership with IBM for the development and maintainance of its IT platforms.

UBP posted a 2018 operating result of CHF257.5 million before provisions (compared with CHF271.2 million in 2017),and a net profit of CHF202.4 million,compared with CHF220.4 million the previous year; an 8.2% decline (or -5.2% excluding non-recurring costs). The cost/income ratio for the year was 65.8% (compared with 64.4% in 2017).

"We continued to invest in both our offering and our resources amid declining markets and a clear drop in client transaction volumes. The acquisitions of ACPI and Banque Carnegie will allow us to step up our growth in Europe,and the recruitment of new teams in Asia and the Middle East reflects our ambitions in those priority markets. This year's strong net inflows are the reward for our teams' hard work in meeting the expectations of our clients,who seek tailored and innovative solutions",said UBP's CEO Guy de Picciotto.

Strong fundamentals

The balance sheet is stable at CHF32.6 billion (CHF32 billion a year ago),and the Tier I ratio,at 26.6%,remains well above Basel III and FINMA minimum requirements.

This careful balance sheet management makes UBP one of the best-capitalised and strongest banks among its peers,as attested by the recent long-term Aa2 deposit rating assigned to it by Moody's.

UBP thus has the financial means required to continue its development both in Switzerland and worldwide.

Click hereto view the complete Financial Results.

About Union Bancaire Privee (UBP)

UBP is one of Switzerland's leading private banks,and is among the best-capitalised,with a Tier I ratio of 26.6% as at 31December 2018. The Bank is specialised in the field of wealth management for both private and institutional clients. It is based in Geneva and employs 1,781 people in over twenty locations worldwide; it held some CHF126.8 billion in assets under management as at 31 December 2018.

www.ubp.com

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