Swiss bank UBS reports 53% increase in net profits

UBS’s private bank, the biggest in the world by assets, posted net new money growth of 8.4 billion francs when adjusted for outflows that UBS deemed not profitable for the bank.

In its view point, the bank warned which typically christmas operates have been more likely to have an impact on incomes and profit margins inside the one in three billet, linking “underlying macroeconomic disputes and geopolitical hassles not going to be committed to the near future”.

Zurich-based UBS’ current legal reserves were disclosed in its second-quarter report on Tuesday, which came one day after its results.

Switzerland’s biggest bank published earnings for the three months a day ahead of schedule to counter what it said was “incorrect and misleading information” published on Sunday by the Swiss weekly paper Sonntagszeitung.

The company said in a statement that second quarter adjusted profit before tax was 1.6bn CHF (£1.1bn).

Clients also withdrew $3.9 billion to pay for taxes during the second quarter, roughly $700 million more than the $3.2 billion in net new money clients put into wealth management accounts.

The retail and corporate division posted pretax profit of 397 million francs, narrowly beating the estimate of 386 million francs. UBS has trimmed its operation by dumping unwanted business into a “noncore and legacy portfolio”, from which it is sold off. That portfolio held 31.6 billion francs in risk-weighted assets in the second quarter, UBS said, down 39% from the same period previous year.

The investment bank’s pretax profit of 551 million francs beat the estimate of 489 million francs.

Revenue from equities trading increased to 1.13-billion Swiss francs from 869-million francs, the highest since 2012.

Andreas Venditti, an analyst at Vontobel, said UBS’s capital position is impressive, particularly in comparison with that of Swiss rival Credit Suisse Group AG.