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Swiss Banking Giant UBS logo in Zurich, March 23, 2023.
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Swiss bank titanium UBS On Wednesday, a net profit was doubled compared to last year, winning expectations in the lower line against the background of incentive from the investment bank and the global wealth management units.
The net profitable, related to shareholders, reached $ 2.395 billion in the second quarter, which compared to $ 1.136 billion over the same period last year and the average foregry forecast of $ 1.901 billion. The bank’s revenues have reached $ 12,112, which is just below the 12.45 billion analysts.
Other highlights of the second quarter included:
- The profitability of its capital was 11.8% compared to 8.5% in the March quarter.
- CET 1 capital coefficient, a measure of bank solvency, amounted to 14.4%, after reaching 14.3% in the first three months of the year.
The subdivision of the world’s lender markets of its investment banking ARM reached 25% of the annual $ 2.3 billion revenue, “tracking exceptional volatility levels at the beginning of the quarter.” In the global wealth management department three months before the end of June, transactions increased by 12%.
However, the CEO of UBS Sergio Ermoti said that, while stock markets are now increasing by 30% of April, when the White House first revealed its so -called mutual tariffs, the level of activity reflects “healthy” but does not record the environment.
“So customers are still in some attitude towards waiting and seeing, not only institutional and private customers, but also … also corporate customers. So, you see the deployment of cash, but the level of condemnation is not yet to the extent that it does it more constructive,” he said Carolin Roth CNBC.
In its release, UBS said that the third quarter began with “strong market assets, especially international shares, combined with a US dollar.”
Pure interest
Clean Interest Interest (NII) Interest Revenue between Revenue Received and Investments, and interest paid in the $ 1.965 deposits after UBS managed a “low percentage” decrease in the second quarter.
In the third quarter, the bank expects that “wide” NII on its world management wealth and corporate banks in Swiss francs, while “in the dollar dollar it means a consistent low percentage.”
“The forecast suggests that the NII has finally frozen and confirmed the existing financial goals, but there are no updates on capital profitability plans, and it seems that the results after the release of the results follow the efforts of UBS.
NII’s performance is particularly concerned for investors, given June Switzerland Return to 0% interest rates In a broader battle, to avoid the fall of national inflation and the Swiss Frank.
“It is difficult to see that (interest) is to increase growth,” said Armati. “The economy is still quite stable, and inflation has not decreased to the required level is likely to take actions.”
The Credit Suisse UBS integration, which he took over in 2023, “remains on the way,” and a third of the Swiss customer accounts who have now moved, and 70% of the expected gross economy of $ 13 billion, UBS reported on Wednesday. Otherwise, the bank said it had completed $ 1 billion in the first half of the year, and another $ 2 billion was bought in the second six -month site.
US Tariffs
This year’s UBS shares were in unequal riding, and the lender suffer from exposure to the US markets after the introduction of Washington so -called mutual tariffs on most global trading partners that caused uncertainty due to the world’s largest economy.
“The feelings of investors remain widely constructive, hardened by constant macroeconomic and geopolitical uncertainty,” UBS said on Wednesday. “Against this background, our client conversations and gas pipelines indicate a high level of readiness among investors and corporations to deploy capital, since the conviction is strengthened around the macro.”
“People need to see the endgles of all these (trade) discussions,” said Armati. “Probably there is a little tired news.”
Inside the country, UBS was trapped in a line with the Swiss authorities who offered in June Strict new capital rules Requiring the bank to hold an additional $ 26 billion. Measures are especially designed to solve problems with UBS’s ability for potential losses at its foreign units. After absorbing UBS Credit Suisse, the Swiss regulators estimated that the lender became “too big to refuse” and pull the national economy and financial system of Switzerland in the event of default.
UBS struggles with the appointment, and in June stated that he supports “in principle” normative proposals, while disagreeing with an “extreme” increase in capital requirements, which estimates will be returned to hold about $ 42 billion in CET1.
Higher capital requirements can significantly reduce the bank balance and credit delivery, reduced risk appetite and potentially affect the availability of discrete funds.
At the end of June, the Swiss Parliamentary Committee supported a petition that may detain some UBS banking issues, According to Reuters.
Asked about new capital demands on Wednesday, ermatti said UBS should remain focused on finalizing credit Suis integration against this background.
“It is very clear to me that we will need to see exactly when the proposals are finalized, approved, and then we will look at the relevant actions to protect the interests of our shareholders,” he said.
