UBS Group AG’s
second-quarter earnings inched higher, though they fell short of analysts’ expectations, held back by steep falls in global stock and bond markets. The Swiss bank on Tuesday reported a quarterly net profit of $2.11 billion, up from $2.01 billion a year earlier. Revenue was $8.92 billion, inching up from $8.90 billion, it said.
Analysts had expected UBS to post a net profit at $2.40 billion on revenue of $9.43 billion, according to a company-compiled consensus. UBS’s wealth-management division, the company’s crown jewel, recorded a 2% revenue drop, dragged by negative market performance, adverse currency effects and lower levels of client activity, especially in the Americas and Asia-Pacific regions. Net new fee-generating assets stood at roughly $400 million. Over the first half of the year, net new fee-generating assets were $19.8 billion. Net new fee-generating asset flows for the quarter were positive by more than $3 billion in Asia-Pacific, a key region where wealth managers have recently experienced weakness as clients dialed down on risk. “The second quarter was one of the most challenging periods for investors in the last 10 years,” Chief Executive Ralph Hamers said. “Our underlying performance reflected a good result in an environment with lower asset levels, higher volatility and increasing rates,” he said …