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ZURICH (Reuters) – UBS <UBSG.S> Tuesday beat its forecast with a net profit of $ 1.4 billion (US $ 1.1 billion) for the second quarter of 2019, gains from its consulting business eased the fall of the bank's 39 investment and strengthened its retail and corporate banking activities in Switzerland.
The 1% increase means that the profits of Switzerland's largest bank exceeded the median net profit estimate in its own consensus survey, down 24.9% to $ 1.038 billion.
"In the second quarter, we achieved the highest net income in the second quarter since 2010 and an improvement over the second quarter of 2018, which was already strong," said CEO Sergio Ermotti in a statement.
Profits from its flagship wealth management business, investment bank and investment bank plummeted as lenders face increasing difficulties due to lower US interest rates, which hurt earnings net interest and increased loan competition, leading to lower margins.
Leading US lenders have recently announced a decline in their profits and revenues due to lower investment banking and trading fees, with the credit bank blocking major Wall Street banks and mitigating the effects of weakness. trading and advisory activities.
But UBS"The consulting business has grown significantly, benefiting from new hires in Asia and the United States, as well as a strong portfolio of deals, helping its business solutions company to regain lost market share.
In wealth management, UBS had net outflows of $ 2 billion as clients withdrew more than $ 5 billion to pay their taxes.
(Report by Brenna Hughes Neghaiwi, edited by John Revill)
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