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February 02, 2016 at 12:07 PM
UBS said Tuesday that it had a fourth-quarter profit of about $958.3 million, up nearly 11% from a year ago thanks to higher net trading income. The latest results included a tax benefit of $722 million, net charges for regulatory and other issues of $368.6 million and a charge of $259.5 million for a debt buyback.
The company’s adjusted operating income increased 3% from last year to $7 billion, while its adjusted pretax operating profit was $761.4 million, an improvement of close to 50% from last year.
Wealth management operations outside of the Americas, however, experienced a decline in profits of about 27% to $509.9 million, though the asset management unit’s adjusted operating profit rose 23% to $154.5 million.
Americas’ Results
The Wealth Management Americas unit, which includes more than 7,000 advisors, reported that its pretax profits sunk 94% to $13 million, mainly due to $180 million in net charges for litigation, regulatory and related matters. Adjusted profits dropped to $63 million from $287 million.
Net new money inflows for the period approached $17 billion on strong recruiting, though sales or operating income fell by $57 million, or 3%, to $1.87 billion in the quarter on lower managed account fees.
Profits excluding special charges were close to $300 million, the company says.
