UBS Profit Jumps 63% In Second Quarter As Wealth Management Division Continues
UBS has exceeded predictions for its second-quarter earnings as the wealthy pour funds into the Swiss bank’s flagship wealth management business.
On Tuesday, Swiss bank UBS reported a 63% rise in second-quarter net profit as markets continued to facilitate the world’s largest wealth manager generate higher earnings from managing the rich’s wealth. UBS’s second-quarter net profit reached $2.01 billion, up from $1.23 billion in the same quarter last year. The profit exceeded analyst predictions of $1.34 billion.
The Swiss bank is pushing to improve its digital services in a bid to extend its customer reach outside the super-rich, which is currently its primary client base. According to a June report by Reuters, UBS sees potential for a new online platform that would bring in $30 billion in the next year.
On Tuesday, UBS also reported $25 billion in new client inflows. This, in combination with strong markets, has helped to push invested assets in the bank’s global wealth management business up by an additional 4%, reaching a total of $3.2 trillion.
Throughout the pandemic, UBS’s trade with ultra-wealthy clients also remained strong, boosting the Swiss bank’s pre-tax profits by 47% in its flagship business.