Zurich (AFP) – Swiss banking giant UBS reported Wednesday that net profit rose 17 percent to $2.8 billion in the second quarter, driven by its investment banking arm. Analysts surveyed by the Swiss agency AWP had on average been expecting a profit of $2.38 billion and revenue of $13.2 billion.
“Strong results in the second quarter and healthy capital generation have further fortified our balance sheet for all seasons and allow us to continue deploying financial resources towards profitable growth opportunities to support clients and deliver on our capital return ambitions,” UBS CEO Sergio Ermotti said in a statement.
Revenues from its investment bank jumped 26 percent in a context of strong market volatility, with the Zurich-based bank describing “a record second quarter” for its global markets business, against a backdrop of record results in the equities, services and financing segment. Its wealth management division recorded a 13 percent increase in revenue, supported by fees generated from client transactions.
Major US investment banks such as Goldman Sachs and Morgan Stanley also reported sharply higher results for the second quarter, boosted in particular by strong activity in equity markets, which have been highly volatile since the start of the conflict in the Middle East.
“As we enter the third quarter, market conditions remain broadly constructive,” the bank said in the statement. “At the same time, ongoing geopolitical developments and volatile energy prices lead to high levels of uncertainty,” it said. “This could contribute to changes in macroeconomic conditions, periods of elevated volatility and more measured investor sentiment.”
© 2024 AFP
