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July 31, 2014 at 01:07 PM
UBS reported on Tuesday that its profit improved by 15% year-over-year to 792 million Swiss francs ($876 million) in the second quarter, beating estimates despite muted client activity and charges resulting from litigation and regulatory matters.
Revenues in the quarter dropped about 3% from last year to roughly 7.14 billion Swiss francs, impacted by “low volumes partly offset by mandate growth,” the company said.
“The mixed outlook for global growth, the absence of sustained and credible improvements to unresolved issues in Europe, continuing U.S. fiscal and monetary policy issues, increasing geopolitical instability and the seasonal decline in activity levels traditionally associated with the summer holiday season would make improvements in prevailing market conditions unlikely,” UBS said in a press release.
Results in UBS’ wealth management businesses, Retail & Corporate and Global Asset Management groups were affected by charges for provisions for litigation, regulatory and similar matters, which totaled 254 million Swiss francs for the group.
Excluding these provisions, Wealth Management achieved an adjusted profit of 684 million Swiss francs as a result of “its strategic initiatives to grow mandate sales and lending,” the company said.
The company attracted net-new-money inflows of 10.7 billion Swiss francs into its wealth management units.
Wealth Management Americas
