UBS attributed the increase in net profit to favourable market conditions and investor sentiment, and continued volume growth
UBS US wealth management headquarters. (Credit: Arnapoli/Wikipedia.)
UBS has reported a net profit of $2bn, or $0.55 per share, for the second quarter ended 30 June 2021, a 63% increase compared to $1.2bn, or $0.33 per share, for the same quarter last year.
The group’s total operating income for the second quarter of 2021 (Q2 2021) was $8.9bn, a 21% rise compared to $7.4bn for the corresponding quarter in 2020.
The firm reported a net interest income of $1.62bn for Q2 2021, an increase of 17% compared to $1.39bn for the same period last year.
The company reported a return on equity (RoE) of 13.7% for the reported period, which increased from 8.6% for Q2 2020.
The Swiss investment bank attributed the rise in its net profit to favourable market conditions and investor sentiment, along with continued momentum in flows and volume growth.
UBS Group CEO Ralph Hamers said: “We sustained our business momentum in 2Q21 as we continued to be a trusted partner for clients.
“Our focus on growth, relentless execution and evolution of our strategic initiatives drove strong financial performance across all businesses, resulting in a pre-tax profit of $2.6bn.
“Our growth in the second quarter was underpinned by the relationships we have built and strengthened throughout the pandemic and by the trust our clients placed in our people and in our firm. All business divisions and all regions contributed to our results.
“Our clients invested more with us – in private markets and separately managed accounts. They came to us to finance their homes and their businesses, and to create liquidity buffers for unforeseen events, all of which led to an increase in net new loans year-on-year.”
UBS’ Global Wealth Management unit reported an operating profit before tax of $1.3bn for Q2 2021, a 47% rise compared to $880m for the corresponding quarter in 2020.
Its Personal & Corporate Banking division reported an operating profit before tax of $498m for Q2 2021, a 100% increase compared to $238m for the same period last year.
The Asset Management business of UBS reported an operating profit before tax of $255m for Q2 2021, a 62% rise compared to $157m for the same quarter in 2020.
The group’s Investment Bank division reported an operating profit before tax of $668m for Q2 2021, compared to $612m for the corresponding last year.