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UBS Q2 profit before tax surges 49% to $2.19bn

UBS Q2 profit before tax surges 49% to $2.19bn

Yahoo3 days ago
Swiss banking giant UBS has disclosed a profit before tax (PBT) of $2.19bn for the second quarter of 2025, a surge of 49% compared to the year ago period.
The net profit attributable to shareholders amounted to $2.39bn, reflecting a 111% increase year-on-year.
This total includes a net release of provisions and contingent liabilities of $427m linked to a legacy Credit Suisse cross-border matter, as well as a net deferred tax benefit of $577m, the group said in its press release.
The return on CET1 capital was reported at 13.5%, with an underlying return of 15.3%.
Total reported revenues reached $12.11bn, which is a 2% increase from the previous year. On an underlying basis, revenues rose by 4% to $11.54bn, with core business revenues increasing by 8%.
For the first half of 2025, UBS reported a PBT of $4.32bn and an underlying PBT of $5.27bn, supported by a 2% rise in underlying revenues and a 2% decrease in underlying expenses.
The net profit for this period was $4.08bn, with a return on CET1 capital of 11.6% and an underlying return of 13.3%.
In the Global Wealth Management division, the PBT was $1.2bn, while the underlying PBT was $1.44bn.
Total revenues for this division increased by $247m, or 4%, to $6.3bn, largely due to higher recurring net fee income and transaction-based income.
The cost/income ratio for this division was 80.8%, and 76.5% on an underlying basis, with invested assets rising by $294bn to $4.51tn and net new assets amounting to $23bn.
The Asset Management division reported a PBT of $153m, with an underlying PBT of $216m. Total revenues increased by $4m to $772m, reflecting gains in net management fees and performance fees.
The division's cost/income ratio was 80.1%, and 72.0% on an underlying basis, with invested assets increasing by $156bn to $1.95tn.
However, net new money was negative $2bn, and negative $5bn when excluding money market flows and associates.
UBS group CEO Sergio Ermotti said: 'We sustained robust momentum during a quarter that started with extreme volatility by staying close to our clients and executing on our integration plans. We also maintained a balance sheet for all seasons while delivering on our capital return plans.
'We are positioning for long term success by further enhancing our global capabilities, investing in our future infrastructure and AI, while actively engaging in the debate on future regulation in Switzerland. This allows us to fulfill our commitment to support all the communities where we live and work.'
Looking ahead to the third quarter, UBS expects that net interest income in Global Wealth Management and Personal & Corporate Banking in Swiss francs will remain stable, translating to a low single-digit percentage increase in US dollar terms.
The bank also anticipates that trading and transactional activity will return to more typical seasonal patterns, particularly in Global Wealth Management's transaction-based revenues and the Investment Bank's Global Markets performance.
UBS has projected pull-to-par revenues to be around $0.4bn, which will help mitigate the expected $1.1bn in integration-related expenses.
The bank stated, 'We remain focused on actively engaging with our clients, helping them to navigate a complex environment while executing on our growth and integration plans.
'We are confident in our ability to deliver on our 2025 and 2026 financial targets, leveraging the power of our diversified business model.'
"UBS Q2 profit before tax surges 49% to $2.19bn" was originally created and published by Private Banker International, a GlobalData owned brand.
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