Key points:

• UBS shares gain
• Profit jumps 17%
• Revenue at record

White-glove wealth manager attracted $36 billion in net new assets. Revenue hit a record.

💰 Wealth Machine Keeps Humming

• UBS shares UBSG climbed 4% Wednesday after Europe’s largest wealth manager reported second-quarter net profit of $2.8 billion, up 17% from a year earlier.
• Strong client activity and record revenue of $13.7 billion helped the Swiss banking giant comfortably exceed expectations.
• The investment bank delivered a standout quarter, with pre-tax profit more than doubling to $1.2 billion. Equities trading led the charge as volatile markets gave institutional investors plenty of reasons to buy, sell and hedge.
• Volatility isn’t always bad news. While it can rattle stock markets, it often boosts trading volumes, creating more opportunities for investment banks to earn fees and trading income.

🏦 Clients Keep Bringing Cash

• UBS’s crown jewel, its wealth management business, attracted $36 billion in net new assets during the quarter and generated nearly $2 billion in underlying pre-tax profit. That’s a sign wealthy clients are still choosing UBS to manage their money despite an uncertain economic backdrop.
• Net new assets measure fresh client money flowing into a business after accounting for withdrawals. Rising inflows typically indicate customers are adding funds and placing greater trust in the firm’s investment platform.
• The results also suggest UBS continues to benefit from its reputation as a global safe haven for high-net-worth individuals looking to preserve and grow capital while markets remain unpredictable.

🔄 Credit Suisse Deal Pays Off

• UBS reported another $1.1 billion in cost savings from integrating Credit Suisse, bringing cumulative savings to $12.6 billion since acquiring its former rival in 2023.
• Investors also received another capital-return boost. UBS launched a fresh $3 billion share buyback after completing its previous repurchase program and plans to buy back at least $1 billion of stock over the next three months.
• CEO Sergio Ermotti said strong earnings and healthy capital generation have strengthened UBS’s balance sheet and positioned the bank to keep investing in profitable growth while returning excess capital to shareholders.
• Wall Street peers including Goldman Sachs and JPMorgan also enjoyed a strong quarter thanks to active trading markets.

Source: Tradingview