UBS second quarter earnings rise however miss forecasts

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UBS Group AG’s
UBSG,
-6.07%
second-quarter earnings inched greater, although they fell wanting analysts’ expectations, held again by steep falls in international inventory and bond markets.

The Swiss financial institution on Tuesday reported a quarterly web revenue of $2.11 billion, up from $2.01 billion a 12 months earlier.

Revenue was $8.92 billion, inching up from $8.90 billion, it mentioned.

Analysts had anticipated UBS to submit a web revenue at $2.40 billion on income of $9.43 billion, in keeping with a company-compiled consensus.

UBS’s wealth-management division, the corporate’s crown jewel, recorded a 2% income drop, dragged by damaging market efficiency, antagonistic foreign money results and decrease ranges of consumer exercise, particularly within the Americas and Asia-Pacific areas.

Net new fee-generating belongings stood at roughly $400 million. Over the primary half of the 12 months, web new fee-generating belongings have been $19.8 billion. Net new fee-generating asset flows for the quarter have been constructive by greater than $3 billion in Asia-Pacific, a key area the place wealth managers have not too long ago skilled weak spot as shoppers dialed down on threat.

“The second quarter was one of the vital difficult durations for traders within the final 10 years,” Chief Executive Ralph Hamers mentioned. “Our underlying efficiency mirrored an excellent end in an surroundings with decrease asset ranges, greater volatility and rising charges,” he mentioned.

The financial institution mentioned it’s well-positioned because it heads into the second half of 2022, and backed its plan to purchase again round $5 billion of its shares by the top of the 12 months.

Write to Cristina Roca at cristina.roca@wsj.com

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