UBS has registered an 11% decrease in net profit in Q2 2020 as it set aside $272m in loan loss provisions linked to the Covid-19 pandemic.

Of the total net credit loss expenses, $110m were in Personal & Corporate Banking, $78m in Investment Bank (IB), $64m in Global Wealth Management (GWM), and $20m in Non-core and Legacy Portfolio.

The decrease in net profit was tempered by growth in the Investment Bank unit.

UBS and its Q2 2020 numbers

Net profit at UBS in the three months to June 2020 was $1.23bn, compared with $1.39bn a year ago.

However, increased credit loss expenses could not deter the bank’s performance in Q1 2020.

The bank registered a 40% jump in net profit in the first quarter driven by increased trading volumes amid the market volatility caused by the pandemic.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The group’s total operating income of $7.4bn in Q2 2020 was 2% lower than the previous year.

Operating expenses increased 1% year-on-year to $5.82bn, driven by higher personnel expenses that were offset by lower general and administrative expenses.

Growth across GWM, Asset Management and Investment Bank businesses

In the Investment Bank unit, pre-tax profit jumped 43% year-on-year in Q2 to $612m.

Global Markets revenue surged 25%, driven by volatility mainly in Foreign Exchange, Rates and Credit products.

Profit before tax at the GWM unit rose 1% year-on-year to $880m, driven by double-digit growth in APAC and EMEA as well as solid growth in Switzerland.

This is said to have offset headwinds in the Americas, due to lower invested assets early in the quarter.

The unit’s invested assets increased 11% to $2.6trn, while net new money was $9bn.

In Asset Management, pre-tax profit increased 27% to $157m.

UBS group CEO Sergio Ermotti said: “The strength, resilience, and diversification of our integrated business model have once again been confirmed by the strong second quarter results and the excellent first half.

“As we continue to face a challenging environment, we are adapting and accelerating the pace of change, supporting our clients, employees, and the economies in which we operate, while remaining focused on our strategic priorities.”