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Swiss bank UBS delivers strong second-quarter results


The Swiss bank UBS continued its strong start to the year with a 62.8% year-over-year increase in net profit to $2.0 billion in the second quarter. UBS’s quarterly profit rose by nearly two-thirds to $2 billion, exceeding market expectations.

UBS Singapore
Facade of the One Raffles Quay building, UBS Singapore.

The performance exceeded analysts’ expectations, helped by strong inflows of new money.

In a statement released Tuesday, CEO Ralph Hamers said that all business lines and regions contributed to the group’s success. According to him, the institution’s activity is accelerating as a consequence of its strategic decisions and initiatives.

As a result of the increase in operating income and pre-tax income, between the end of April and the end of June, the company earned $8.98 billion and $2.59 billion respectively. Credit risk releases of $80 million benefited the bank.

UBS managed to improve its cost-to-revenue ratio by 4.1 basis points to 71.8% despite a 9.7% increase in operating expenses to 6.4 billion dollars.

Wealth management, the bank’s core business, saw net new money inflows of $25.0 billion from all regions, following $36.2 billion in the first quarter. A 47% increase in pre-tax income was driven by the segment’s services business and sustained client activity in buoyant markets.

Additionally, UBS is continuing its share buyback program. The bank bought back its own shares for the equivalent of $1.4 billion earlier this year. In the third quarter, it plans to buy back another $600 million worth of shares.

The group did not provide a performance outlook for the remainder of the year. It announced at the end of April that it wanted to reduce its annual costs by $1 billion by 2023.

For MetaNews.


Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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