UBP says integration of Coutts International on schedule

(Adds detail on Coutts International deal, assets under management)

By Joshua Franklin

ZURICH, July 28 (Reuters) - Union Bancaire Privee (UBP (Taiwan OTC: 6471.TWO - news) ) said on Tuesday its integration of Coutts International, bought from Royal Bank of Scotland (LSE: RBS.L - news) , is "on schedule" as the strong franc weighed on first-half earnings.

The Geneva-based private bank hopes the purchase of RBS's international wealth management business will strengthen its hand in Asia.

When the deal was announced in March it was estimated UBP would gain around 30 billion Swiss francs ($31.1 billion) in assets from the Coutts buy, with the Asian business seen as the biggest draw.

Not including assets from Coutts, UBP posted assets under management of 93.1 billion francs at the end of June.

This was down 1.8 percent from a year earlier, largely due to the strong Swiss franc lowering the value of cash it holds in foreign currencies.

Switzerland's currency has surged in 2015 following a central bank policy move to end a 1.20-franc-per-euro currency cap in June.

The franc is currently trading at around 1.06 francs per euro.

"With 80 percent of our assets being denominated in foreign currencies, the strengthening of the Swiss franc has been a significant drag on our revenues," UBP Chief Executive Guy de Picciotto, son of the bank's founder, said in a statement.

"The impact of this has been estimated to be 20 million francs over the first six months of the year, and it could increase in the second half of 2015."

Its first-half net profit fell 3 percent at 79.5 million francs.

($1 = 0.9646 Swiss francs)

(Reporting by Joshua Franklin; editing by Jason Neely)