UBS net profit rises 17% to $2.8bn on investment bank

UBS said on Wednesday that second-quarter net profit rose 17% to $2.8 billion, driven by its investment banking arm.

The Swiss banking group’s profit was above the $2.38 billion average expected by analysts surveyed by Swiss agency AWP. The analysts had expected revenue of $13.2 billion.

Chief executive Sergio Ermotti said in a statement that the quarter’s results and capital generation had strengthened UBS’s balance sheet and allowed the bank to keep directing resources towards growth opportunities and capital return plans.

UBS said revenues from its investment bank rose 26%, helped by strong market volatility. The Zurich-based bank described the period as a record second quarter for its global markets business, with record results in equities, services and financing.

The bank said its wealth management division recorded a 13% increase in revenue, supported by fees from client transactions.

UBS said market conditions remained “broadly constructive” entering the third quarter, but said geopolitical developments and volatile energy prices were creating high levels of uncertainty. It said this could contribute to changes in macroeconomic conditions, periods of elevated volatility and more measured investor sentiment.