UBS Group’s second-quarter earnings moved higher, although they came in below analysts’ estimates, due to a sharp drop in global equity and bond markets.
The Swiss bank reported quarterly profit of $2.11 billion, up from $2.01 billion a year ago.
Revenue came in at $8.92 billion, up from $8.90 billion.
Analysts had expected UBS to report net profit of $2.40 billion and revenue of $9.43 billion.
UBS’s wealth management unit, the firm’s crown jewel, posted a 2% drop in revenue due to negative market performance, adverse currency effects and lower levels of client activity, especially in the Americas and Asia-Pacific regions.
Net new assets amounted to almost 400 million dollars. In the first half of the year, net new assets amounted to 19.8 billion dollars.
The second quarter was one of the most difficult periods for investors in the last 10 years, the CEO stressed. “Our underlying performance reflects a good result in an environment of lower asset levels, higher volatility and rising rates,” he said.
The bank also said it is in a good position heading into the second half of the year, and backed its plan to buy back more than $5 billion of equity by the end of the year.
I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.