UBS prof­its up on strong in­ter­na­tional wealth man­age­ment per­for­mance

The Star (St. Lucia) - - BUSINESS -

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

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