UBS reports 63% jump in net profit as wealth management division soars
The wealthy poured money into UBS’ flagship wealth management unit, beating earnings estimates in the second quarter.
The Swiss banking behemoth reported a $2 billion net profit attributable to shareholders for the second quarter of the year on Tuesday. According to Refinitiv statistics, this represents a 63 per cent increase over the same period last year and is much more than analysts’ projections of $1.34 billion.
Other noteworthy events from the quarter include:
- Operating income increased to $8.98 billion from $7.4 billion the previous year.
- The return on tangible equity was 15.4 per cent, up from 9.7% a year before.
- The CET 1 ratio, which measures bank solvency, stands at 14.5 per cent, up from 13.3 per cent a year ago.
This, together with favourable market circumstances, boosted invested assets in the global wealth management industry by 4% to $3.2 trillion.
While solid market momentum had bolstered the wealth management segment and sparked additional investment demand from clients, Hamers said the underlying patterns were also encouraging.