Swiss banking giant UBS has reported an attributable net profit of CHF1.03bn for the second quarter of 2016, down 14% from CHF1.21bn in the prior-year quarter.
Total operating income was CHF7.40bn, a fall of 5% from CHF7.82bn the year ago. Net interest income plummeted 22% to CHF1.16bn from CHF1.49bn the year earlier.
Total operating expenses decreased 2% to CHF5.91bn from CHF6.06bn during the same quarter in 2015.
The wealth management unit of UBS posted profit before tax of CHF518m for the second quarter, a slump of 31% from CHF756m in the corresponding period of 2015. The unit’s adjusted profit before tax was CHF606m, a decline of 21% from CHF769m the year ago.
Total operating income at the wealth arm dropped 13% to CHF1.81bn from CHF2.08bn in the prior year, while net interest income increased 2% year-on-year to CHF582m.
The division’s total operating expenses dipped 2% to CHF1.29bn from CHF1.32bn in the prior corresponding period.
Net new money in the wealth-management business was CHF6bn during the second quarter, driven by strong net inflows from Asia Pacific and Switzerland. Net new money from ultra high net worth clients was CHF4.8bn.
The unit's invested assets were CHF935bn, down 1% from CHF945bn the year ago.
Wealth Management Americas registered profit before tax of CHF242m for the second quarter, a surge of 18% from CHF205m in the prior-year quarter.
The division’s total operating income decreased 1% to CHF1.92bn from CHF1.94bn the year ago, while total operating expenses decreased 3% year-on-year to CHF1.68bn. Net new money at the unit during the period was CHF2.4bn.
Asset Management unit reported profit before tax of CHF114m for the second quarter of 2016, down 12% from CHF130m during the same quarter in 2015. Adjusted profit before tax increased 10% to CHF148m from CHF134m the year earlier.
Excluding money market flows, net new money outflows at the unit were CHF8.8bn.
UBS CEO Sergio Ermotti said: “We achieved this strong result by helping our clients navigate continued difficult market conditions, while staying disciplined on risk and further reducing cost. UBS remains in a solid position with strong capital, strategic clarity and a well-diversified business model.”