The wealth management division of UBS has reported an adjusted profit before tax of CHF393 million for the second quarter of 2014, down 35% compared to CHF607 million a year ago.
The result included charges for provisions for litigation, regulatory and similar matters.
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Excluding these charges, and considering market conditions, wealth management’s performance was "resilient at CHF 684 million", UBS said in a statement.
Lombard lending, mandate sales and invested assets all rose, but were offset by lower transaction-based income on low volatility and volumes. The gross margin on invested assets was down 3 basis points to 84 basis points.
The division’s adjusted cost / income ratio, the Swiss banking giant said above its current target range.
Net new money remained very strong at CHF10.7 billion and the bank achieved an annualized net new money growth rate at the upper end of its target range.
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By GlobalDataWealth Management Americas reported an adjusted profit before tax of US$ 246 million. Invested assets exceeded US$1 trillion for the first time. Operating income increased reflecting continued growth in managed account fees and higher net interest income.
Overall, UBS group posted a net profit of CHF792 million for the period, compared with CHF690 million in the same quarter last year.
Also, UBS announced that it has settled a German investigation into its role aiding tax evasion among German clients by paying roughly EUR300 million (US$403 million).
UBS previously settled a related issue in the US.
UBS booked CHF120 million in provisions related to the German settlement in its second-quarter results.
