UBS profits up on strong international wealth management performance
UBS enjoyed a 14 per cent rise in pretax profits in the second quarter thanks to a strong performance in its international private bank, but its American wealth management division and investment bank both posted weaker than expected results.
The Swiss bank reported pretax profits of SFr1.2bn for the three months to end of June, in line with analysts' expectations on an underlying basis.
Chief executive Sergio Ermotti said: “Considering market conditions, the second quarter results were very good and contributed to a strong first half of the year. Our global wealth management business, in particular, delivered an excellent performance. The results once again demonstrate the value of our diversified business model, allowing us to grow profitably and sustainably over the cycle and in a variety of market conditions.”
International wealth management made adjusted pretax profits of SFr691 in the quarter, up 14 per cent year on year and beating the SFr678m expected by analysts. Net new money was particularly strong, in at SFr13.7bn, more than twice its level in the second quarter of 2016.
Wealth management Americas posted adjusted profits of SFr336m versus the SFr377m expected, and the division suffered net outflows of SFr6.4bn. At the investment bank, adjusted profits fell 6 per cent to SFR419m, worse than the SFr440m expected.
--- Financial Times