Swiss private bank Union Bancaire Privée released its financial results on Friday for the first half of 2023.

Union Bancaire Privée, the Geneva-based bank that operates in a number of regions, has reported a net profit of SFr110.8 million ($128 million) in the first half of 2023, down by 1.6 per cent from SFr112.6 million a year earlier, faced with a challenging environment.

Operating expenses totalled SFr414.8 million, and were in line with the previous year’s figure of SFr411.7 million, the bank said in a statement. The small rise of 0.7 per cent was the direct result of a pickup in business travel. Operating profit before taxes was up 0.8 per cent, amounting to SFr138.0 million compared with SFr 136.9 million in the first half of 2022, the bank added.

Revenues amounted to SFr616.4 million in the first half of the year, representing a slight decrease of 0.7 per cent compared with SFr620.9 million in the first half of 2022. A slowdown in fees and commissions (-12.5 per cent), primarily due to lower brokerage activities was compensated by a strong net interest margin, up SFr62.6 million (+43.3 per cent), supported by recent rate hikes, the bank said.

UBP’s assets under management remained stable at SFr140.6 billion at the end of June 2023 compared with SFr140.4 billion at the end of 2022. This result was achieved in a context of rising asset prices in the major currencies (SFr +4.2 billion) which were largely offset by the appreciation of the Swiss franc against the US dollar (SFr -3.5 billion).

The bank said that the Tier 1 ratio of 27.3 per cent and the short-term liquidity coverage ratio (LCR) of 262 per cent reflect the quality of its balance sheet and its financial strength, as also reconfirmed by the Aa2 long-term deposit rating issued by Moody’s.  

“The first half of the year was marked by the strength of the Swiss franc, high inflation, and rapidly rising interest rates. Although global markets have recovered, clients tend to have a “wait-and-see” attitude. It is our role to be alert to opportunities across all markets, and to present suitable solutions to our clients wherever they are,” UBP’s CEO Guy de Picciotto said.