{"id":18782,"date":"2025-07-30T05:47:04","date_gmt":"2025-07-30T05:47:04","guid":{"rendered":"https:\/\/finderica.com\/?p=18782"},"modified":"2025-07-30T05:47:04","modified_gmt":"2025-07-30T05:47:04","slug":"ubs-q2-earnings-2025","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=18782","title":{"rendered":"UBS Q2 earnings 2025"},"content":{"rendered":"<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107216804\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>A logo of Swiss banking giant UBS in Zurich, on March 23, 2023.<\/p>\n<p>Fabrice Coffrini | Afp | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Swiss banking titan <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\">UBS<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> on Wednesday doubled net profit year-on-year, beating expectations on the bottom line amid a boost from its investment bank and global wealth management divisions.<\/p>\n<p>Net profitable attributable to shareholders hit $2.395 billion in the second quarter, up from $1.136 billion in the same period of last year and beating a mean LSEG analyst forecast of $1.901 billion. The bank&#8217;s revenues over the period reached $12.112 billion, just below analyst expectations of $12.45 billion.<\/p>\n<p><strong>Other second-quarter highlights included:<\/strong><\/p>\n<ul>\n<li>Return on tangible equity was 11.8%, compared with\u00a08.5% in the March quarter.<\/li>\n<li>CET 1 capital ratio, a measure of bank solvency, was\u00a014.4%, after hitting 14.3% in the first three months of the year.<\/li>\n<\/ul>\n<p>The lender&#8217;s global markets unit of its investment banking arm achieved a 25% annual hike to $2.3 billion in revenues, &#8220;tracking the exceptional levels of volatility early in quarter.&#8221; The global wealth management division saw transaction-based income up 12% in the three months to the end of June.<\/p>\n<p>The lender&#8217;s net interest income (NII) \u2014 the difference between gains made of loans and investments, and the interest paid on deposits \u2014 was\u00a0$1.965 billion,\u00a0after UBS had guided for a &#8220;low single-digit percentage&#8221; of declines in the second quarter.<\/p>\n<p>In the third quarter, the bank expects &#8220;broadly stable&#8221; NII at its global wealth management and corporate bank divisions in Swiss francs, while &#8220;in US dollar terms, this translates to a sequential low single-digit percentage increase.&#8221;<\/p>\n<p>The NII performance is of particular concern to investors, given Switzerland&#8217;s June\u00a0<a href=\"https:\/\/www.snb.ch\/en\/publications\/communication\/press-releases-restricted\/pre_20250619_2\" target=\"_blank\" rel=\"noopener\">return to 0% interest rates<\/a>\u00a0in a broader battle to stave off the fall in national inflation and the strength of the Swiss franc.<\/p>\n<p>UBS shares have been on a bumpy ride this year, with the lender suffering as a result of its exposure to U.S. markets in the wake of Washington&#8217;s imposition of so-called reciprocal tariffs on most global trade partners, which have triggered uncertainty over the outlook for the world&#8217;s largest economy.<\/p>\n<p>&#8220;Investor sentiment remains broadly constructive, tempered by persistent macroeconomic and geopolitical uncertainties,&#8221; UBS said Wednesday. &#8220;Against this backdrop, our client conversations and deal pipelines indicate a high level of readiness among investors and corporates to deploy capital, as conviction around the macro outlook strengthens.&#8221;<\/p>\n<p>Domestically, UBS has been trapped in a drawn-out row with Swiss authorities, which in June proposed\u00a0<a href=\"https:\/\/mail.google.com\/mail\/u\/0\/108155181\" target=\"_blank\" rel=\"noopener\">strict new capital rules<\/a>\u00a0requiring the bank to hold an additional $26 billion in core capital. The measures are particularly meant to address concerns over UBS&#8217; ability to buffer potential losses at its foreign units. Following UBS&#8217; takeover of Credit Suisse, Swiss regulators assessed the lender has become &#8220;too big to fail&#8221; and would drag down Switzerland&#8217;s national economy and financial system in the event of its default.<\/p>\n<p>UBS has been fighting the designation and in June said it supported &#8220;in principle&#8221; the regulatory proposals, while disagreeing with the &#8220;extreme&#8221; increase in capital requirements, which it estimates would push it to hold around $42 billion in additional CET1 capital in total.<\/p>\n<p>Higher capital requirements can considerably diminish a bank&#8217;s balance sheet and credit supply, dampen risk appetite and potentially impact availabilities of discretionary funds.<\/p>\n<p>In late June, a Swiss parliamentary committee backed a motion that could delay some of the UBS banking proposals,\u00a0<a href=\"https:\/\/www.reuters.com\/sustainability\/boards-policy-regulation\/swiss-parliamentary-committee-backs-motion-that-may-delay-some-ubs-capital-rules-2025-06-24\/\" target=\"_blank\" rel=\"noopener\">according to Reuters<\/a>.<\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.cnbc.com\/2025\/07\/30\/ubs-q2-earnings-2025.html\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A logo of Swiss banking giant UBS in Zurich, on March 23, 2023. Fabrice Coffrini | Afp | Getty Images Swiss banking titan UBS on Wednesday doubled net profit year-on-year, beating expectations on the bottom line amid a boost from its investment bank and global wealth management divisions. Net profitable attributable to shareholders hit $2.395<\/p>\n","protected":false},"author":1,"featured_media":18783,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[1095,2475],"class_list":{"0":"post-18782","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-earnings","9":"tag-ubs"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/18782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18782"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/18782\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/18783"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}