UBS (NYSE:UBS) has surpassed second-quarter earnings expectations as the wealthy poured money into its flagship wealth management business.
The Swiss banking giant on Tuesday reporting net profit attributable to shareholders of $2 billion for the second three months of the year. This marks a rise of 63% from the same period last year, and significantly above analysts expectations of $1.34 billion
In its earnings report, UBS attributed the success to "favorable market conditions and investor sentiment,” along with “continued momentum in flows and volume growth."
Moreover, operating income hit $8.98 billion from $7.4 billion a year ago. Return on tangible equity stood at 15.4%, versus 9.7% a year ago. CET 1 ratio, a measure of bank solvency, reached 14.5% versus 13.3% a year ago.
"Our growth in the second quarter was underpinned by the relationships we have built and strengthened throughout the pandemic and by the trust our clients placed in our people and in our firm. All business divisions and all regions contributed to our results," UBS CEO Ralph Hamers said in a statement.
Hamers told media outlets on Tuesday that the bank’s strategic focus on particular sectors and clients was now starting to manifest itself as increased demand.
"All the changes that we made over the last one to two years around the banking side [are] actually paying off, and with that you see actually that we are gaining market share. It is because of the focus on our client franchise," he said.
UBS shares 41 cents, or 2.8%, to $14.95.
