UBS said that its operating income in Q2 2020 was down by 2% to $7.4bn compared to $7.53bn in the same quarter in the previous year
UBS reported a decrease of 11% in its net profit at $1.23bn in the second quarter that ended 30 June 2020 compared to $1.39bn reported in the same quarter of 2019.
The bank said that the second quarter of 2020 was hit by credit loss expenses totaling $272m, of which $110m was from its personal and corporate banking unit, while $78m was recorded in the investment banking business.
In the first quarter of 2020, the Swiss global investment bank reported a net profit of $1.59bn.
The diluted earnings per share of the banking group came down 9% to $0.33 in Q2 2020 compared to $0.37 in Q2 2019.
UBS’ operating income in Q2 2020 was down by 2% to $7.4bn compared to $7.53bn in the same quarter in the previous year. Its operating expenses increased from $5.77bn in Q2 2019 to $5.82bn in the reported period.
The total assets held by UBS at the end of the second quarter of 2020 reached $1.06 trillion, compared to $968.7bn in Q2 2019.
The global wealth management (GWM) business of the bank reported profit before tax of $880m, which represents a 1% increase from Q2 2019.
In the personal & corporate banking (P&C), the bank’s profit before tax came down 41% year-over-year to $238m.
In the asset management business, UBS grew its profit before tax in Q2 2020 by 27% to $157m, compared to the same quarter of 2019.
The investment bank business reported a 43% year-over-year increase in its profit before tax at $612m in the second quarter of 2020.
UBS also reported a net profit of $2.83bn in the first half of 2020, which is an increase of 12% compared to $2.53bn made in the first half of 2019.
UBS group CEO comments on the Q2 2020 results
UBS group CEO Sergio Ermotti said: “The strength, resilience, and diversification of our integrated business model have once again been confirmed by the strong second quarter results and the excellent first half.
“As we continue to face a challenging environment, we are adapting and accelerating the pace of change, supporting our clients, employees, and the economies in which we operate, while remaining focused on our strategic priorities.”