UBS posted a mixed performance in the second quarter amid market turmoil and recession fears. Net profit was $2.1 billion, up 5% year-on-year.
Over the half, gains totaled 4.2 billion.
Between April and the end of June, receipts remained almost stable at 8.91 billion dollars. The group’s operating expenses fell by 1% to 6.29 billion dollars, according to the number one Swiss bank on Tuesday.
These indicators are below the AWP consensus.
“The second quarter was one of the most difficult periods for investors in the last ten years,” said managing director Ralph Hamers, quoted in the press release, pointing to inflation, the war in Ukraine and even the confinements in China.
In wealth management, its core business, pre-tax profit fell 11% to 1.1 billion, due to lower revenues and higher operating expenses. It soared 276% in the asset management division, to 959 million, thanks to the sale of the joint venture with Mitsubishi.
The investment bank saw this indicator plunge by almost 40% to 410 million, due to a fall in income partially offset by reduced operating expenses.
A widely followed indicator of profitability, the return on Tier 1 equity reached 14.2% when UBS was aiming for around 13%. The cost/income ratio improved to 70.6%, after 72.8% a year earlier. For each franc earned, the establishment spends 70.6 centimes to cover its costs.
The share buyback program continued, for 1.6 billion dollars of securities acquired, or 3.3 billion over six months. The bank plans to buy back $5 billion in securities this year.
In an environment of low asset levels, high volatility and rising rates, UBS says it is well positioned to support its clients “in an environment that remains uncertain”.
This article has been published automatically. Source: ats/awp