UBS Reports a Quarterly Profit That Exceeds Forecasts and Announces $3 Billion In Fresh Buybacks

Opening a new tab on Wednesday, UBS (UBSG.S) reported a 17% increase in second-quarter profit that exceeded forecasts and announced intentions to repurchase $3 billion worth of shares by the middle of next year at the latest.

The largest bank in Switzerland, which is awaiting clarification on new capital regulations that may influence its future, reported strong, all-around growth, especially in wealth management and its investment bank. In keeping with Wall Street’s and European competitors’ impressive performance, its trading segment reported record second-quarter revenue.

The net profit attributable to shareholders was $2.8 billion, as opposed to the $2.39 billion predicted by analysts surveyed by the business.

UBS, which acquired rival Credit Suisse following its demise in 2023, exceeded its goal of 15% at the end of the year with a return on Common Equity Tier 1 capital of about 17% for the first half of the year.In a call with analysts, Chief Executive Sergio Ermotti stated, “We are close to reaching the same level of profitability UBS had prior to the acquisition, underscoring our efforts over the last three years.”

UBS shares increased 2.5% in morning trading as analysts praised the buybacks and the performance.

However, several analysts also pointed out that throughout the last three months, the stock has increased by 28%.

In a letter to customers before to the market opening, Zuercher Kantonalbank stated, “We assess the bank’s development positively, but consider the current share price to be fair.”

The bank stated that, despite the high level of uncertainty, it anticipates that market conditions will continue to be generally positive for the current quarter.

According to UBS, net new assets for its worldwide wealth management division totaled $36 billion for the quarter, with $14.3 billion in inflows coming from Switzerland.

The Americas saw a $1 billion influx for the second straight quarter following a period of losses brought on by the departure of some relationship managers. That exceeded certain forecasts regarding a return to outflows.