Union Bancaire Privee said first- half profit declined 34 percent as the Geneva-based wealth manager founded by Edgar de Picciotto integrated ABN Amro Bank NV’s Swiss unit and Nexar Capital Group.
Profit fell to 70 million Swiss francs ($70.7 million) from 105 million francs a year earlier, the closely held bank said today in a statement. Client assets under management rose 6 percent to 76 billion francs at the end of June from six months earlier after net inflows and the purchase of Nexar.
“The first half of 2012 saw business activity slow in tough markets, with steps being taken to keep costs on a tight rein,” Guy de Picciotto, chief executive officer and son of UBP’s founder, said in the statement.
UBP, once the world’s largest investor in hedge funds, is rebuilding through acquisitions after assets slumped 44 percent since 2007. The bank bought the ABN Amro unit last August and added $3 billion of assets with the February purchase of Nexar, an alternative investment manager based in Paris and New York.
UBP, which employs about 1,400 people, cut about 100 jobs, mainly in operations and information technology, after buying the ABN Amro business, the company said last month. The bank’s cost-income ratio was 76 percent in the first half.
To contact the reporter on this story: Giles Broom in Geneva at firstname.lastname@example.org
To contact the editor responsible for this story: Frank Connelly at email@example.com