PRESS
Release
P A R I S , 2 5 O C T O B E R 2 0 1 1
UFF RESPONDS WELL TO THE CRISIS,
NET BANKING INCOME AT 30TH SEPTEMBER 2011 REACHES 112.4 M€
UFF has responded well to the crisis in the financial markets over the summer 2011. Although overall subscriptions were impacted by the decrease in real estate, net subscriptions are positive. Total Net Banking Income has declined by 6%.
"Our solid and reactive business model allows us to absorb the impact of the crisis and to go on investing to improve our offer and our brand awareness among affluent and mass affluent segments " declares Nicolas Schimel CEO of UFF.
10
Subscriptions drop by 18% due to real estate
After two years of strong growth, thanks to the effect of the
Scellier fiscal framework, rental real estate is in sharp
decline.
As a consequence, UFF's real estate activity has witnessed a
sharp drop in direct sales of real estate units: - 56% over
the first 9 months of 2011 compared to the same period in
2010. The decrease is less marked in the area of
subscriptions into REITS (- 6%).
Total subscriptions, excluding real estate, have increased by
2%, despite gloomy economic conditions in the first half of
the year and a worsening of the crisis since the summer.
This strong performance stems from the life assurance
activity which is up +6%. Life assurance has benefited from:
The launching of a new policy : UFF Compte Avenir Plus
The tailoring of UFF funds to the economic situation (flexible funds and corporate bond funds)
The responsive nature of asset allocation in this period of crisis.
The activity over the first 9 months of the year generated 42.6 M€ in placement commissions. This figure is down 11% compared with 2010, but can be mainly attributed to the decrease in real estate activity.
Net subscriptions over the first 9 months of 2011: 19 M€.
This figure for net subscriptions is close to the 2010 figure
(20 M€).
While there has been an increase in payments into accounts
and instalments into savings plans (+6%), this has been
offset by a slight rise in redemptions : the retention rate
for assets reached 92% at the end of September 2011 compared
with 92.3% at the same date in 2010, with, however, an
improvement in the 3rd Quarter.
Despite net subscriptions holding up well at 19 M€, the
figure for assets managed by UFF on behalf of its clients has
declined from 7.2 Bn€ on 31st December 2010 to
6.6 Bn€ on 30th September 2011, due to the
decline in financial markets.
Management commissions stemming from these assets amounted to
69.3 M€, a figure equal to that of 2010. This stability
reflects the stability of average assets managed under UCITS,
which generated 89% of management commissions.
Overall, total net banking income for the first 9 months of
2011 amounted to 112.4 M€ ; a drop of 6% compared with the
first 9 months of 2010.
Outlook
UFF continues to develop in line with its strategic plan « Ambition Patrimoine », which is aimed at strengthening UFF's position as market leader in the sector of advice on wealth creation for private individuals and Chief Executives of companies:
The pace of recruitments has been sustained: 193 commercial employees have joined
UFF since the beginning of the year.
The range of products aimed at the self-employed and freelance workers, a segment of our target with very specific expectations, has been enlarged by new savings plans (PERCO, PERCOI) and protection policies intended for this client segment.
Development actions will go on being implemented despite a global reduction of budgets for overheads fixed at the beginning of the year.
The summer financial crisis has affected both UFF's activities and assets, but UFF has responded well to the situation:
A good working relationship between UFF's Head Office and the investment managers has led to a reduction in the exposure of flexible funds and a minimising of the greater risks of the crisis,
98 % of our clients having subscribed flexible funds of our GPS range declared they were satisfied with the information sent by UFF throughout summer.
The close relationship between financial advisors and their clients has provided our clients with support and advice tailored to their wealth creation and wealth management objectives.
The contribution made by UFF financial advisors is highly
appreciated by our clients, as shown, once again this year,
by the results of a client satisfaction survey carried out by
IFOP*. Whereas the level of satisfaction of the affluent and
mass affluent sample vis-à-vis their financial advisors had
fallen, the UFF clients voted overwhelming satisfaction in
their financial advisors: 93% said they were satisfied, 91%
have a good image of UFF financial and real estate product
range. In addition, 65% of the UFF sample thought that the
UFF advisors put their clients' interests first, whereas the
majority of the non client sample thought that their advisors
put the interests of their own employers first.
UFF will continue to follow its strategic plan until the end
of this year. The strategic plan aligns responsiveness to the
markets and client needs, good financial control of overhead
costs, and the continued development of medium term actions.
* survey carried out by IFOP on a sample of 300 affluent and mass affluent non UFF clients, and on a specific sample 150 UFF clients.
UFF in brief
Set up in 1968, Union Financière de France is a bank which specialises in advice on the creation and management of wealth, and which offers a range of products and services suited to individual clients and Chief Executives of companies. Its product range includes real estate, securities, and life assurance, as well as a wide range of products aimed at the Chief Executives of companies (retirement savings plans, employee savings plans, medium cash management plans, etc).
Union Financière de France is present throughout France and has 1100 employees, 800 of whom are financial advisors.
At 30th September 2011, Union Financière de France had 140 000 clients, of whom 119 000 were private individuals and 21 000 were companies.
Union Financière de France Banque is listed on Euronext Paris Compartiment B Code Euroclear 3454
Code ISIN FR0000034548.
For all information, please contact :
UFF UFF Golin Harris Martine Simon Claudel Hélène Sada-Sulim Coralie Ménard Executive Vice President Head of Communication Press Relations
Tel : +44 (0)1 40 69 63 71 Tel : +44 (0)1 40 69 64 77 Tel : +44 (0)1 40 41 56 09