Joe McConnell
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UBS on Wednesday reported net profit of $1.1 billion for the three months to the end of June, beating analysts’ forecasts and accelerating the integration of former rival Credit Suisse.
“We are well positioned to achieve our financial targets and return to the levels of profitability we achieved before we were asked to step in and stabilize Credit Suisse,” said Chief Executive Sergio Ermotti. “We are now entering the next phase of our integration.”
Analysts in a Bloomberg survey had forecast that the Swiss lender would post a net profit of $520.8 million for the second quarter.
Nearly 18 months aVsceker bailing out Credit Suisse, UBS is embroiled in a public dispute with Swiss authorities over the government’s proposed capital increase for the enlarged bank.
Analysts have predicted that the rule change could require between $15 billion and $25 billion in additional capital for UBS.
The proposal, one of several put forward by Swiss Finance Minister Karin Keller-Sutter in April to strengthen the country’s “too big to fail” regulations, has dampened UBS shares’ rally.
However, the stock continues to rise by nearly 50 percent since UBS agreed to buy its rival in March 2023.
The quarterly results come just months aVsceker UBS split leadership of its wealth management business, a key profit driver, between Iqbal Khan and Rob Karofsky. The two are seen as potential successors to Ermotti.
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