The global wealth management unit of UBS posted an adjusted pre-tax profit of $886m for the second quarter of 2019, a 12% decrease on a year-on-year basis.
Adjusted operating income at the wealth unit dipped 3% to $4.06bn from $4.16bn while the division’s adjusted operating expenses increased to $3.17bn from $3.15bn.
Net new money was negative by $2bn, however, the Swiss bank noted this was mostly due to the seasonal tax-related outflows at its US unit. Other regions had net new money inflows. Invested assets increased by $54bn (2%).
UBS Asset Management
UBS’s Q2 results were boosted by its asset management business, where invested assets rose to a record $831bn.
Adjusted pre-tax profit was $135m at the business, an increase of 10% from the previous year’s figure of $122m.
The unit’s adjusted operating income rose 3% to $475m from $461m while adjusted operating expenses remained almost flat at $340m.
UBS Group Q2 results
At a group level, UBS was able to boast the highest second-quarter net profit since 2010. UBS registered a net profit attributable to shareholders of $1.39bn.
The figure is an increase of 1% from last year’s profit of $1.38bn.
However, the group’s adjusted pre-tax profit in the three-month period ended 30 June 2019 was $1.79bn, down 2% from $1.82bn in the same quarter of 2018.
Operating income dropped 1% year-on-year to $7.53bn.
Operating expenses of $5.77bn was 3% lower than the previous year.
The bank’s CET1 capital ratio and CET1 leverage ratio were 13.3% and 3.8%, respectively, at the end of June 2019.
UBS CEO Sergio Ermotti said: “Overall, our goals remain unchanged: to deliver sustainable and profitable long-term growth while investing in our businesses and providing attractive shareholder returns.”