UBS reports $2.8 billion second-quarter net profit, topping $2.39 billion estimate

UBS reported net profit attributable to shareholders of $2.8 billion in the second quarter, above the $2.39 billion average analyst estimate in a company-provided poll, as record revenue of $13.7 billion, strong client activity and a standout investment banking performance lifted results. The Swiss bank said profit rose 17% from $2.395 billion a year earlier, while pre-tax profit reached $3.6 billion, up 64% year-on-year. Its wealth management unit attracted $36 billion in net new assets and generated nearly $2 billion in underlying pre-tax profit, while the investment bank posted pre-tax profit of $1.2 billion, more than doubling from a year earlier, with equities trading benefiting from volatile markets. CEO Sergio Ermotti said the bank saw strong momentum across the business in the second quarter, with a very good pipeline in investment banking, M&A and capital markets, positive results in leveraged capital markets, debt capital markets and equities, and a vibrant IPO market. He said geopolitical volatility could create temporary headwinds, but added UBS was well positioned to benefit from a healthy correction in AI-related market concentration by helping clients diversify. UBS also said first-half net profit totaled $5.8 billion and group invested assets stood at $7.3 trillion. It reported another $1.1 billion in cost savings from integrating Credit Suisse, bringing cumulative savings since the 2023 acquisition to $12.6 billion. The bank completed $3 billion in repurchases in July, launched a fresh buyback program of up to $3 billion through June 2027 and plans to buy back at least $1 billion of stock over the next three months. UBS shares were 2.5% higher in morning trade. The size and pace of future buybacks will depend on near-term financial performance and the outcome of Swiss regulatory discussions tied to the Credit Suisse collapse and takeover, including proposals that could require the bank to hold roughly $20 billion in additional Common Equity Tier 1 capital.