UBS posts net profit because market volatility increases trading

Swiss Banking Titan UBS On Wednesday, the net profit doubled year -on -year and defeated expectations on the lower line in the middle of support from its investment banks and the divisions of the global property manager.

Net profitable attributed to shareholders reached $ 2.395 billion in the second quarter, out of $ 1.136 billion in the same period last year and defeated the average LSEG analysis forecast of $ 1.901 billion. Bank revenue for the period reached $ 12.112 billion, just below the expectation of analysts $ 12.45 billion.

The main values in the second quarter include:

• The return on tangible capital was 11.8%, compared to 8.5% in the March quarter.
• This 1 capital ratio, the level of bank solvency, was 14.4%, after reached 14.3%in the first three months of the year.

The global market unit of its investment banking creditor has reached a 25% annual increase to $ 2.3 billion in income, “monitoring an exceptional level of volatility at the beginning of the quarter”. The Global Property Management Division has recorded income based on transactions by 12% in three months until the end of June.

However, the CEO of UBS Sergio Ermotti said that while the stock markets are now 30% since the minimum in April, when the White House first published its so -called reciprocal tariffs, the level of activity reflected “healthy” but not recorded.

“So customers are still on any attitude of waiting and vision, not just institutional and private customers, but … also corporate customers. So you see cash deployment, but the level of belief is not to the extent that it will be more constructive,” CNBC Carolin Roth said.

UBS said in his earnings that the third quarter started “a strong market performance of risk assets, especially international shares, combined with a weak US dollar”.

Creditor Instand (NII)-Between Loan and Investment Profits and Interests paid from deposits 1,965 billion, after UBS had a “low single-digit percent” guide in the second quarter.

In the third quarter, the bank expects “widely stable” NII in its global divisions of assets and corporate banks in the Swiss francs, while “in US dollar conditions this is reflected in the sequential low -digit percentage increase”.

“The outlook suggests that NII has a final and existing financial objectives has been research, but there is no update of payback plans, and the UBS lobbying efforts for recent Swiss capital proposals will continue,” analysts Citi said.

NII’s performance is particularly concerned about investors, as the Swiss June returns to 0% interest rates in the Battle for Broad to avert the decline in national inflation and the power of Swiss Frank.

“For the time being, it will be difficult to see that (leisure) rats will rise,” Ermotti said. “The economy is still quite resistant and inflation failed at the level of need, probably to evaluate.”

The UBS integration for the rival with the Switzerland loan, which it took over in 2023, “remains on the way”, with one third of the Swiss customer accounts and 70% of the experimented gross savings of $ 13 billion, she said on Wednesday. Otherwise, the bank said it had completed $ 1 billion in the first half of the year to buy shares, followed by another $ 2 billion in the second six -month section.

This year, UBS shares were on a bumpy ride, with the creditor suffering as a result of the exhibition as a result of the deposit of the so -called Vrsk tariffs on most of the global business partners who caused uncertainty about the view for the world economy.

“The feeling of investors remains broadly constructive, alleviated by persistent macroeconomic and geopolitical measures,” UBS said on Wednesday. “Our client conversations and pipes on this background indicate a high level of reading between investors and corporations to deploy capital because the belief surrounds the macro outlook.”

“People must see the end game of all these (business) discussions,” Ermotti said. “Probably there is a little fatigue.”

On the domestic market, UBS was imprisoned in a stretched line with the Swiss authorities, which in June proposed strict new capital rules that require the bank to hold another $ 26 billion in the main capital. In particular, the measures are to address the ability of UBS to balance potential losses on their foreign units. After taking over the credit Switzerland, the Swiss regulatory bodies assessed that the creditor has become “too big to fail” and in the case of the default setting would drag the Swiss national economy and financial system.

UBS is fighting the designation and stated in June that it basically supported “basically” regulatory proposals, while they disagreed with the “extreme” increase in capital requirements, estimating that it would make it a total of approximately $ 42 billion.

Higher capital requirements can significantly reduce the balance sheet of the bank and the loan offer, the APB risk and the potential impact on available discretion funds available.

At the end of June, according to Reuters, the Swiss Parliamentary Committee supported some of the UBS banking proposals.

A question about the new capital requires a proposal on Wednesday, Ermotti said UBS must continue to be focused on completing the integration of credit Switzerland on this background.

“It is very clear to me that we will have to see exactly when the proposals will be completed, approved, and then we will consider reasonable steps to protect the interests of our shareholders,” he said.