- Second quarter net profit of $ 2.006 billion, beats analyst estimate of $ 1.343 billion
- $ 25 billion influx of new customers generating fees in the second quarter
- Focus on digitization to help win more business
ZURICH, July 20 (Reuters) – Swiss bank UBS (UBSG.S) posted a 62.8% increase in second quarter net profit on Tuesday as dynamic markets continue to help the world’s largest wealth manager to generate higher income through money management for the rich.
Second-quarter net income of $ 2.01 billion, up from $ 1.23 billion in the same quarter a year ago, far exceeded expectations of $ 1.34 billion in a poll of 20 analysts compiled by the bank.
âOur growth in the second quarter was supported by the relationships we established and strengthened throughout the pandemic,â Managing Director Ralph Hamers said in a statement, adding that all business divisions and regions contributed to the increase .
“The momentum is on our side and our strategic choices and initiatives are bearing fruit.”
Hamers, at the top of the rankings since November, has set his sights on digitization to help win more business from the lower echelons of the world’s wealthy.
UBS is trying to improve its digital services to reach more clients outside of its very rich client base. He sees the potential for a new online platform to generate $ 30 billion next year after launching in May 2020, Reuters reported in June. Read more
UBS saw a $ 25 billion influx of commission-generating new clients on Tuesday. Combined with strong markets, this helped push the assets invested in its global wealth management business up 4% sequentially to $ 3.2 trillion.
Trade between its rich and ultra-rich clients also remained strong, helping Switzerland’s largest bank to increase pre-tax profits by 47% in its flagship business, as the increase in lending also helped offset the impact. the fall in interest rates on its net interest income.
Reporting by Brenna Hughes Neghaiwi; Editing by Kenneth Maxwell
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