UBS has posted a decline of 96% in its net profit to $1.14bn for the second quarter that ended 30 June 2024 (Q2 2024), compared to $27.33bn reported in the same quarter of 2023.
The previous year’s figure was influenced by a $27.26bn negative goodwill gain resulting from the acquisition of Credit Suisse.
In the first quarter of 2024, the net profit of the Swiss investment bank and financial services company was $1.75bn.
The diluted earnings per share (EPS) of the lender for the reported quarter were $0.34, compared to $8.51 in Q2 2023.
UBS’ total revenues in Q2 2024 were $11.9bn, reflecting an increase of 25% over the revenues of $9.54bn in Q2 2023. In the preceding quarter, that is Q1 2024, the banking group’s revenues were $12.74bn.
The operating expenses of UBS for the reported quarter were $10.34bn, an increase of 22% compared to $8.48bn in the corresponding quarter of the prior year.
For Q2 2024, the global wealth management, personal and corporate banking, and asset management units of UBS reported revenues of $6bn, $2.27bn, and $768m, respectively.
The Swiss banking company’s investment bank and non-core and legacy units posted revenues of $2.8bn and $401m, respectively.
UBS’ total net credit loss expenses in Q2 2024 were $95m, compared with net credit loss expenses of $623m in the previous-year quarter.
UBS Group CEO Sergio Ermotti said: “Our first-half results reflect the significant progress we have made since the closing of the acquisition as we deliver on all of our commitments to stakeholders. We are well positioned to meet our financial targets and return to the levels of profitability we delivered before being asked to step in and stabilise Credit Suisse.
“We are now entering the next phase of our integration, which will be critical to realise further substantial cost, capital, funding and tax benefits. As we execute on our plans, we will continue to invest to position UBS for sustainable growth while staying close to clients, providing even better outcomes for them and the communities where we live and work.”
Separately, UBS agreed to sell Credit Suisse’s US mortgage servicing business to an undisclosed consortium of buyers. The deal is expected to be completed in Q1 2025.
