[ad_1]
UBS significantly increased its earnings in the second quarter. In the overall management of assets, however, the major bank had to accept an outflow of funds of 1.2 billion francs.
UBS has won a lot more. (Arnd Wiegmann / Reuters)
The big bank UBS made a profit of 1.3 billion francs in the second quarter, thus gaining significantly better than the year before. Revenue (+ 4%) grew significantly faster than costs (+ 2%), leading to a significant rise in pre-tax profit of 12% to € 1.7 billion. Although operational efficiency, measured by the cost / income ratio, has increased, there is still room for improvement of 77.5% – the cost of each franc taken is 77.5 cents. The fact that there is still a lot of room for improvement also hints at the 10.1% increase in return on equity, which is not very impressive. The quarterly result, which exceeded expectations, contributed to the profit of the group in the first half being up almost 15% to CHF 2.8 billion.
Net cash out of 1.2 billion
The machine room of the bank is and remains the global wealth management business (Global Wealth Management). This unit contributed CHF 1 billion or more than 60% of the Bank's consolidated pre-tax consolidated profit in the second quarter. This success is attributable to a high level of assets under management, a growing customer penetration by mandates, an increase in net interest margins and an increase in loan income. This is explained by higher tax disbursements in the United States of about 4.6 billion francs and withdrawals of 4.4 billion francs as part of a program of 39, employee shareholding in the Americas region. Total assets under management at the end of the quarter amounted to CHF 3,242 billion, up 11% year-on-year.
Hungry Investment Bankers
In addition to the GloBalealth Wealth Management unit, investment banking services also performed better in all regions and all product lines. With a pre-tax profit of CHF 569 million, it increased its pre-tax earnings contribution by a good quarter. The growing success of investment bankers is waking up the desire for more autonomy and more resources. It is increasingly difficult for them to understand themselves as auxiliaries to asset managers, especially as their colleagues in the US competition are getting significant results, on the exceptional profit margin. They have the impression of being in tune with the end World Cup, as the Croats who reached the finals inside the bank and flirt with the loosening of the strategic corset that imposed on them
. than the previous year. Lower performance-related revenues and higher investment in technology, in particular, impacted results. After all, excluding movements of money market funds, net inflows were slightly reduced and, with CHF 810 billion, asset management was managing as much money as ever before in the course of the year. last decade.
The good working order of the bank is reflected in a solid capital base. The risk-weighted "hard" debt ratio decreased slightly to 13.4% due to an increase in risk-weighted assets. On the other hand, the unweighted ratio (leverage ratio) increased to 3.75%. Both ratios are above minimum regulatory levels.
Only moderate market volatility is expected in the third quarter
In addition to the usual seasonal factors, the large bank expects moderate overall market volatility in the third quarter, which generally has a negative impact on the market. customer activity. Overall, the Big Bank believes that markets will continue to benefit from the prospects for global economic growth, although geopolitical tensions and increasing protectionism are likely to weigh on investor confidence and continue to pose a threat.
Source link
