UBS Q2 +14%, up for wealth management

UBS kept a cautious outlook on the second half of 2017 on Friday after it reported an unexpected rise in second-quarter net profit, boosted by higher earnings at its flagship wealth management business.

UBS said net income was 1.17 billion Swiss francs ($1.21 billion) during the second quarter, up from CHF1.03 billion a year earlier and far overshooting the average forecast in a Reuters analyst poll for 879 million francs. Operating income fell slightly to CHF7.3 billion from CHF7.4 billion a year earlier. 

UBS said its key wealth-management division saw 7.5 billion francs of net new money. "Improved investor sentiment and enhanced confidence have translated into improvements in wealth management client activity levels," UBS said.
"However, the persistence of low volatility levels and seasonality factors may continue to affect overall client activity" the statement reported.
    
The bank's bottom line was boosted by a strong performance in the group's wealth management division, where profit from the Asia-Pacific region for the first time contributed more positively than any other region.
    
Operating profit before tax at UBS's wealth management division and its U.S. brokerage business rose 12 percent and 26 percent respectively.
    
CEO Sergio Ermotti said that "considering market conditions, the second quarter results were very good and contributed to a strong first half of the year."
    
    
The bank confirmed its target of cutting costs by a net 2.1 billion francs by the end of 2017 versus 2013, saying it had saved 1.8 billion francs by the end of the second quarter.