UBS has reported its second quarter results of the 2009. Net loss attributable to UBS shareholders was CHF1.4 billion in second quarter 2009 compared with CHF1,975 million in first quarter 2009. This was driven by lower losses on risk positions from businesses now exited or in the process of being exited by the investment bank. Second quarter results were affected by a charge of CHF1.21 billion for own credit on financial liabilities designated at fair value, restructuring charges of CHF582 million and goodwill impairment charges of CHF492 million in relation to the announced sale of UBS Pactual. Net loss from continuing operations was CHF1.1 billion compared with a net loss of CHF1.8 billion.
Total operating income increased to CHF5.770 billion from CHF4.9 million. This was driven by lower trading losses with a net trading income of positive CHF220 million compared with negative CHF 630 million. Net interest income decreased to CHF1.1 billion from CHF1.89 billion. UBS recorded a credit loss expense of CHF388 million in second quarter 2009, compared with 1.1 billion in first quarter 2009. Net fee and commission income was CHF4.5 billion, up 6%. Second quarter 2009 saw an increase in underwriting and net brokerage fees partly offset by decreases in the other fee categories. Other income decreased to CHF292 million from CHF595 million.
Total operating expenses increased 9% to CHF7 billion. Second quarter 2009 included restructuring charges of CHF582 million and an additional goodwill impairment charge of CHF492 million related to the announced sale of UBS Pactual, while first quarter 2009 included a goodwill impairment charge of CHF631 million related to this transaction. BIS tier 1 ratio of 13.2% and BIS total capital ratio of 17.7% at quarter-end, including the effect of the capital increase completed on 30 June 2009.
