UBS wealth-management operations in the Americas reported Tuesday, July 27, declining client assets and financial advisors during the second quarter, but positive inflows when interest and dividends were included. The Zurich-based bank also substantially beat forecasts on profits.
UBS AG reported an overall second-quarter a profit of 2 billion Swiss francs ($1.9 billion), beating analysts’ forecasts of 1.34 billion francs on Tuesday, when UBS Group CEO Oswald Gruebel told Reuters that he remained committed to the U.S. business. The results were a big improvement over last year’s second-quarter when UBS lost 1.4 billion francs.
The brokerage unit, which does business in the United States and Canada, is led by former Merrill Lynch executive Bob McCann
Net new money outflows were 2.6 billion Swiss francs (about $2.5 billion), excluding interest and dividends, compared with 7.2 billion Swiss francs in the first quarter and 5.8 billion Swiss francs in the year-ago quarter.
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Last week, Morgan Stanley said the second-quarter outflows of its 18,000-plus advisors were $5.5 billion, including interest and dividends.
UBS said it would have had net inflows of 1.7 billion Swiss francs ($1.6 billion) this quarter for its U.S. advisors and net inflows of 2.0 billion Swiss francs ($1.9 billion) for advisors in both the U.S. and Canada.
“This marks the first quarter of net inflows on this basis since first quarter 2009,” the company said in its full earnings report.
The number of advisors in the unit stands at 6,760, a 2% decline from the first quarter and a 15% decline from last year.