Yahoo Finanza UBS’s Successful Q2 Results In A 63% Increase In Net Profit
The shares of UBS are rallying today after the investment bank reported a 63% surge in net profit in the second quarter of the year, thanks to the strong performance from its wealth management division.
UBS’s Shares Lead The Market
The shares of UBS rose by over 4% earlier today after the investment bank presented its earnings report for Q2 2021. UBS is the first major European bank to present its earnings, and it didn’t disappoint.
The Swiss banking giant reported a net profit of $2 billion for the second quarter of 2021. This figure is higher than the analysts’ estimate of $1.35 billion and represents a 63% increase from the same quarter of 2020.
The return on tangible equity was 15.4% versus 9.7% a year ago, while the operating income rose to $8.98 billion from $7.4 billion a year ago. Following the presentation of its Q2 earnings, the shares of UBS began to rally, rising by over 4% today. The rally today brings its total rise year-to-date to 19%, making it one of the best performing banking stocks in Europe.
UBS Records Massive Growth In Its Wealth Management Division
UBS’s Q2 growth can be attributed to the excellent performance it recorded in its wealth management division. According to the company, the wealth management division raked in quarterly profit before tax of $1.3 billion, representing a 47% increase from the same quarter a year earlier.
The recurring net fee income from the wealth management division also rose by 30% during the second quarter of 2021. The recurring net fee income and the buoyant market condition were responsible for lifting invested assets in the global family office business by 4%, bring it to $3.2 trillion.
The income generated is due to the massive $7 billion the bank lent ultra-high net worth clients, especially in the United States, where the clients accounted for $5.3 billion of the total. UBS CEO Ralph Hamers is optimistic about the market. He describes the second quarter as one with momentum and is optimistic about the short-term recovery of the economy.
This article was originally posted on FX Empire
