UBS Wealth management invested money in our flagship wealth management business, which exceeded our earnings forecasts for the second quarter.
A major Swiss bank reported on Tuesday a net profit attributable to shareholders of $ 2 billion over the next three months of the year.this is 63% year-on-year increaseAnd, according to Refinitiv data, it is well above analysts’ expectations of $ 1.34 billion.
In its earnings report, UBS attributed this success to “strong market conditions and investor sentiment,” as well as “continuous momentum of flow and volume growth.”
Other quarterly highlights:
- Operating profit increased from $ 7.4 billion a year ago to $ 8.98 billion.
- Return on tangible shareholders’ equity was 15.4%, but a year ago it was 9.7%.
- The CET1 ratio, a measure of a bank’s solvency, reached 14.5%, compared to 13.3% a year ago.
“The growth in the second quarter was supported by the relationships we have built through the pandemic and the trust our clients have placed in our employees and the company. All business units and regions have contributed to our performance.” UBS CEO Ralph said. Hammers said in a statement.
“The momentum is on our side, our strategic choices and initiatives are paying off, and we want to make the most of the future.”
The bank’s flagship global wealth management division made the largest contribution to the results, with pre-tax profit up 47% to $ 1.3 billion. Recurring net commission income increased by 30%. This is primarily due to $ 25 billion in net new fee-generating assets.
This helped boost investment assets in the global wealth management business by 4% to $ 3.2 trillion, along with strong market conditions.
In a recorded message released with the earnings report, Hammers said that while credit card transactions in Switzerland have returned to near pre-Covid levels, investors around the world are more optimistic about the short-term economy. I emphasized that it has become.
“If you could describe the last quarter in one word, it’s momentum,” Hammers said.
Although not mentioned in the second quarter report, the bank has previously closed all exposures to Arquegos, stating that the second quarter loss is “insignificant.”
Net profit up 63% to $ 2 billion
Source link Net profit up 63% to $ 2 billion