UBS has beaten second-quarter earnings expectations as the wealthy poured money into its flagship wealth management business.

The Swiss banking giant on Tuesday reporting net profit attributable to shareholders of $2 billion for the second three months of the year. This marks a rise of 63% from the same period last year, and significantly above analysts expectations of $1.34 billion, according to Refinitiv data.

In its earnings report, UBS attributed the success to “favorable market conditions and investor sentiment,” along with “continued momentum in flows and volume growth.”

Other highlights for the quarter:

  • Operating income hit $8.98 billion from $7.4 billion a year ago.
  • Return on tangible equity stood at 15.4%, versus 9.7% a year ago.
  • CET 1 ratio, a measure of bank solvency, reached 14.5% versus 13.3% a year ago.

“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,” UBS CEO Ralph Hamers said in a statement.

“Momentum is on our side and our strategic choices and initiatives are paying off. And we are eager to make the most of the future.”

Wealth management boom



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