Swiss based UBS declared at the beginning of the week that due to its wealth management division and top tear clients they had a 50% profit increase this quarter.
27 Jul 2015 – New York Times
UBS, based in Zurich, reported a profit of 1.21 billion Swiss francs, or about $1.26 billion, for the three months that ended June 30, compared with 792 million francs in the same period last year. The results exceeded analysts’ forecasts and came a day earlier than expected after a report in a Swiss newspaper on Sunday included inaccurate figures for the quarterly earnings.
UBS and its rival Credit Suisse reported stronger second-quarter results, overcoming investment bank weaknesses and making gains in Asia, particularly in wealth management.
Operating income, which is similar to revenue, rose 9 percent to 7.82 billion francs, from 7.15 billion francs in the second quarter of 2014. Operating expenses rose 2 percent to 6.06 billion francs, from 5.93 billion francs in the same period last year.
“I am pleased with the quarter,” Sergio P. Ermotti, the chief executive of UBS, said in a news release. “We maintained our momentum despite ongoing market challenges.”
UBS said that its adjusted pretax profit, which excluded items like gains on sales of businesses and restructuring charges, was 1.64 billion francs.
Since a government rescue in 2008, UBS has aggressively cut costs and left businesses to meet stricter Swiss capital requirements and better prepare the bank to weather future financial upheavals.
In the second quarter, the bank created a Swiss holding company to wall off its Swiss retail and corporate business as well as some of its wealth management operations from other business lines. UBS said it was the first bank in Switzerland to complete such a step.