The Swiss banking major posts its highest second-quarter net profit since 2010
Swiss banking giant UBS has reported a net profit of $1.39bn (£1.12bn) for the second quarter of 2019.
The net profit for the quarter was slightly higher compared to the second quarter result for last year, which stood at $1.288bn (£1.03bn). However, the company’s revenues had fallen from $7.6bn (£6.11bn) to $7.5bn (£6.03bn) in the quarter on year-on-year basis.
The banking major’s profit before tax (PBT) stood at $1.76bn (£1.41bn) in the second quarter, up 3% compared to the same quarter a year earlier.
UBS Group CEO Sergio Ermotti said: “In the second quarter we achieved the highest 2Q net profit since 2010 and an improvement on an already strong 2Q18. Once again we showed the strength of our business model and its ability to generate competitive returns even with market conditions far from last year’s.
“Overall, our goals remain unchanged: to deliver sustainable and profitable long-term growth while investing in our businesses and providing attractive shareholder returns.”
Compared to last year’s second quarter, the bank reduced its operating expenses from $5.9bn (£4.74bn) to $5.7bn (£4.58bn).
The lender’s net income was up in the second quarter despite a fall in its profit in its wealth management division. Its global wealth management operating profit declined from $1bn (£800m) recorded in the second quarter of last year to $886m (£711.8m).
UBS said: “Recurring net fee income recovered quarter-on-quarter, although down YoY, as invested assets rose to a record by the end of June 2019. Transaction-based income rose 3%, while net interest income decreased. Regionally, the Americas posted record profits. Mandate penetration increased to 34.4% of invested assets.”
However, its personal and corporate banking division’s profit slightly increased from $357m (£286.8m) to $392m (£314.9m).
Its asset management division reported a slight increase in profit from $122m (£98m) to $135m (£108.4m) in the second quarter this year.
Its investment bank division saw a decrease in profit from $571m (£458.7m) posted in the second quarter of 2018 to $440m (£353.5m).