UBS posts best profit since 2010, ups dividend

Profits tumbled at UBS’ core wealth management and investment banking divisions in the fourth quarter of 2015, sending shares diving.

The company also expects to attribute net profit to non-controlling interests related to preferred notes issued by UBS AG of approximately 80 million francs in 2016, all in the second quarter, approximately 70 million francs in 2017 and less than 10 million francs per year from 2018. Derivatives revenue fell because of weaker trading income and lower client activity, primarily in Europe, Middle East and Africa and Asia Pacific, the Zurich-based bank said.

The bank said it aimed to pay a 2015 dividend to shareholders of 0.60 francs per ordinary share and a special dividend of 0.25 francs.

One bright spot was UBS’s Wealth Management Americas unit, which reported net new money of $16.8 billion in the quarter, as the bank aggressively recruited new advisers and their clientele. Outflows were heaviest among European clients and those in emerging markets, the bank said.

The group confirmed in its fourth quarter results statement a pretty solid set of financial results despite keeping 365 million Swiss francs (£249 million, $358 million) in a pot for litigation and regulatory matters.

But he said the bank was sticking with its plan to invest more in its Chinese business and double its number of clients there, despite the country’s slowing economic growth and wild gyrations in its stock market.

Switzerland’s biggest bank on Tuesday (Feb 2) posted net profit of 6.20 billion Swiss francs (S$8.66 billion), compared with the 5.75 billion francs analysts had forecast in a Reuters poll.

The bank said its adjusted return on tangible equity, a closely watched profit measure, stood at 11.4 per cent in the quarter.

UBS said its key capital ratio stood at 14.5% in the fourth quarter, up from 13.4% in the same period a year earlier.