UBS reports firm profits for Q2

Print This Post A A A

Swiss bank UBS has reported strong results for the second quarter in its drive to refocus activities and turn the page on the financial crisis.

The bank, which is slimming down after turmoil during the crisis, reported pre-tax operating profit of 775 million Swiss francs ($A910.39 million).

This was 21.0 per cent less than the outcome in the first quarter, but it showed a big switch from a loss of 130 million francs for the second quarter of last year.

Last week, the bank had already signalled its results, reporting a net profit for the second quarter of 690 million francs, marking an increase of 62.5 per cent from the figure in the same period of last year.

Those figures were announced when the bank said it was settling a dispute in the United States over subprime instruments by paying a fine of $US885 million.

On Tuesday, it said that operating profit in the second quarter rose by 15.0 per cent on a 12-month comparison to 7.3 billion francs.

The activities of managing private wealth turned in a pre-tax operating profit of 557 million Swiss francs from a profit of 502 million francs last time, and from 664 million francs in the first quarter of this year.

It explained the figure had fallen between the first and second quarters because it had had to pay 104 million francs under a tax agreement between Switzerland and Britain.

Excluding this charge, the pre-tax outcome had risen, it said.

Wealth management activities in the Americas, presented separately, raised pre-tax operating profit by four per cent from the first-quarter figure to 243 million francs.

Managing director Sergio Ermotti said in a statement that he was highly satisfied with the results for the quarter.