UBS (UBS) released estimates for its second-quarter results on Monday in an apparent effort to pre-signal the markets about its actual results, which are set to be released July 30.
The global investment bank expects its operating profit before taxes to be up 7% from last year to roughly 1.020 billion Swiss francs (or $1.3 billion) and its net profit attributable to shareholders to jump 62% to about 690 million Swiss francs ($742 million).
Last year, it reported a second-quarter operating profit before taxes of 951 million Swiss francs ($1.02 billion) and a net profit of 425 million Swiss francs ($457 million).
The bank also says that its Basel III common equity tier 1 ratio should “improve significantly to approximately 11.2% on a fully applied basis and 16.2% on a phase-in basis.”
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These preliminary results include pre-tax charges of about 865 million Swiss francs (or $930 million) for litigation, other provisions and an impairment of financial assets; some 700 million Swiss francs ($753 million) is expected to affect the results of the Corporate Center, while roughly CHF 100 million ($108 million) will impact its non-U.S. Wealth Management in relation to the Swiss-U.K. tax agreement.
In addition, UBS plans to report “strong” net new money in the wealth-management businesses, with net inflows of some 10.1 billion Swiss francs ($10.9 billion) in non-U.S. Wealth Management and about 2.7 billion Swiss francs ($2.9 billion) in Wealth Management Americas, which includes about 7,000 advisors. Global Asset Management experienced net outflows of 2.0 billion Swiss francs ($2.2 billion).