UBS profit up as investment bank shines
UBS Group AG UBS, +0.91% said Tuesday that its net profit rose in the second quarter, supported by the performance of its wealth-management and investment-bank units.
The Swiss banking giant’s net profit grew 9.4% to 1.28 billion Swiss francs ($1.29 billion). Operating income increased to CHF7.55 billion from CHF7.27 billion a year earlier.
Analysts had expected the Swiss bank’s net profit to stand at about CHF1.02 billion and had forecast adjusted operating income of CHF7.38 billion, according to a consensus forecast provided by the company.
The bank’s global wealth-management unit reported a 7% year-on-year increase in adjusted pretax profit, which stood at CHF1.08 billion, with CHF1.2 billion in net new money outflow in the quarter.
This "included higher seasonal tax-related outflows in the U.S. of approximately CHF4.6 billion and a single outflow of around CHF4.4 billion in the Americas from a corporate employee share program," UBS said.
The Swiss bank reported a 44% increase in adjusted pretax profit at its investment bank operations, which came in at CHF605 million.
"Global economic-growth prospects continue to provide a supportive backdrop to markets, although ongoing geopolitical tensions and rising protectionism have dampened investor confidence and remain a threat," UBS said in a statement.
Looking to the third quarter, UBS said volatility "remains muted overall" and that is "usually less conducive to client activity."
Source: Read Full Article