Equity lenders and traders shine at UBS

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A huge leap in equity capital markets work added to a strong quarter for the Swiss group’s financial investment bank

UBS’ lenders and traders working throughout the equity markets created increased earnings throughout the 2nd quarter, assisting to own a near 60% increase in revenues at the Swiss group’s financial investment bank.

UBS reported Sfr732m in earnings from its business customer services system, which houses its advisory and capital markets financing groups, in the 3 months to June 30– up 9.5% year-on-year.

A 48% leap in equity capital markets charges to Sfr289m assisted offset mostly flat advisory incomes and a considerable fall in financial obligation capital markets work.

In financier customer service– or sales and trading– profits were flat at Sfr1.3 bn. A drop of a 5th from UBS’ forex, rates and credit profits was balanced out by the bigger equities business, where incomes increased by 6% to Sfr928m.

This left reported incomes in the financial investment bank, run by Andrea Orcel, partially ahead of a year earlier at Sfr2bn, and pre-tax revenues up by nearly 60% at Sfr451m.

Worker costs at the department were down, with the bank stating headcount in the department had fallen by 103 throughout the quarter.

The Swiss bank’s valued international wealth management business saw pre-tax earnings of Sfr582m, up 12% and created Sfr13.7 bn worth of net brand-new money, Sfr11.8 bn which originated from ultra-high-net-worth customers.

Sergio Ermotti, UBS’ president, stated in a declaration: “Considering market conditions, the 2nd quarter outcomes were excellent and added to a strong very first half of the year. Our international wealth management business in specific provided an outstanding performance.

“The outcomes as soon as again show the value of our varied business design, permitting us to grow successfully and sustainably over the cycle and in a range of market conditions.”

The bank reported group operating earnings before tax of Sfr1.7 bn, up around 13% year-on-year.