UBS Smashes Second Quarter Profit Expectations As Credit Suisse Consolidation Boosts Revenue

Swiss banking giant UBS on Wednesday smashed net profit expectations for the second quarter, amid cost-cutting steps and swelling revenue at the lender’s global wealth management and investment bank units.

Net profit attributable to shareholders came in at $1.136 billion for the period, versus a company-compiled consensus forecast of $528 million.

Profit was nonetheless lower than the $1.755 reported in the first quarter, as expected by analysts.

UBS shares were 2.35% higher at 9:10 a.m. London time.

Group revenue also beat forecasts in the second quarter, coming in at $11.904 billion versus an LSEG-compiled poll of $11.522 billion.

UBS said strong capital markets activity had partially offset a drag from net interest income, which it had previously flagged would be weaker due to lower lending and deposit volumes and lower Swiss interest rates.

​