UBS: posts highest profit since 2010

(CercleFinance.com) - Swiss investment bank UBS reported its most profitable quarter since 2010 on Tuesday, boosted by higher earnings from its corporate banking and asset management divisions.


The Zurich-based wealth manager said second-quarter profit before tax rose by 3% to 1.8 billion dollars. Net profit attributable to shareholders was 1.4 billion dollars, up 1% year-on-year.

The bank said that ajusted profit before tax at its personal and corporate banking (P&C) business reached 391 million Swiss francs, up 11% compared to the second quarter of 2018.

Its asset management unit posted adjusted proft before tax of 135 million dollars, up 10%, with management fees increasing on the back of slightly higher average invested assets.

"We showed the strength of our business model and its ability to generate competitive returns even with market conditions far from last year's," said Chief Executive Sergio Ermotti.

In its statement, UBS said the overall pace of global growth has stabilised at a lower level after the synchronised global slowdown of previous quarters.

The bank noted that downside risks remain, due to political uncertainties and geopolitical tensions.

The market's reaction was positive, however, with the share trading up 1.2% this morning on Zurich's SMI index.

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