A logo of the Swiss Banking Giant UBS in Zurich, on March 23, 2023.
Fabrice Coffrini | AFP | Getty images
Swiss bank titan UBS On Wednesday, he doubled the net gain year after year, exceeding expectations in the final result in the middle of an impulse of his investment bank and global heritage management divisions.
Net profitable attributable to shareholders reached $ 2,395 billion in the second quarter, compared to $ 1,136 billion in the same period of last year and exceeding an average forecast of LSE analyst of $ 1,901 billion. Bank’s revenues during the period reached $ 12,112 billion, just below the expectations of analysts of $ 12.45 billion.
Other outstanding aspects of the second quarter include:
- The return of tangible equity was 11.8%, compared to 8.5% in the quarter of March.
- The capital ratio CET 1, a bank solvency measure, was 14.4%, after reaching 14.3% in the first three months of the year.
The Global Markets Unit of the lender of its investment bank arm achieved an annual increase of 25% to $ 2.3 billion in income, “tracing exceptional volatility levels at the beginning of quarter.” The Global Heritage Heritage Management Division saw that transactions -based income increased 12% in the three months until the end of June.
The net interest income of the lender (NII), the difference between the profits made of loans and investments, and the interest paid in the deposits, was $ 1,965 billion, after UBS had guided for a “low percentage of a single digit” of decreases in the second quarter.
In the third quarter, the bank expects “widely stable” NII in its global patrimony management divisions and corporate banks in Swiss francs, while “in terms of US dollar, this translates into a percentage sequential increase of a single single digit digit.”
Nii’s performance is of particular concern for investors, given the June return of Switzerland to interest rates of 0% in a broader battle to avoid the fall in national inflation and the strength of Francs Swiss.
UBS’s actions have been on a trip full of potholes this year, with the lender suffering as a result of their exposure to US markets following the imposition of Washington of the so -called reciprocal rates in most world commercial partners, who have triggered uncertainty about the perspective of the world’s largest economy.
“The feeling of investors is still widely constructive, tempered by persistent macroeconomic and geopolitical uncertainties,” UBS said Wednesday. “In this context, our client conversations and business pipes indicate a high level of preparation between investors and companies to deploy capital, since conviction around the macro perspective is strengthened.”
At the national level, UBS has been caught in a prolonged row with the Swiss authorities, which in June proposed new strict capital rules that require the bank to have an additional $ 26 billion in central capital. The measures are particularly intended to address concerns about the ability to cushion potential losses in their foreign units. After the acquisition of Credit Suisse UBS, the Swiss regulators evaluated that the lender has become “too great to fail” and drag the national economy and the financial system of Switzerland in case of non -compliance.
UBS has been fighting the designation and in June said that he supported “in principle” the regulatory proposals, while he does not agree with the “extreme” increase in capital requirements, which estimates that he would boost him to maintain around $ 42 billion in additional CET1 capital in total.
The highest capital requirements may significantly reduce the balance sheet and credit supply of a bank, cushion the risk appetite and potentially impact the availability of discretionary funds.
At the end of June, a Swiss parliamentary committee supported a motion that could delay some of UBS’s bank proposals, according to Reuters.
