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Profit in the three months ended June rose 5% to $2.1 billion. That compared with $2.0 billion a year earlier and lagged expectations for a 19.8% rise to $2.4 billion in a poll of 19 analysts compiled by the bank.
UBS kicks off a round of earnings by major banks across Europe, where analysts are watching for signs that a weaker economy, higher interest rates and the war in Ukraine are weighing on their operations and outlooks.
Graphic: UBS quarterly earnings – https://graphics.reuters.com/UBS-RESULTS/gdpzylexovw/chart.png
“The second quarter was one of the most challenging periods for investors in the last 10 years,” Chief Executive Ralph Hamers said in a statement. He said the operating environment in the second half of the year “remains uncertain”.
UBS’ performance comes after some U.S. rivals earned overall less money in the quarter due to drops in deal making and the selling of investment products. JPMorgan Chase & Co (NYSE:JPM) and Morgan Stanley (NYSE:MS) both reported that investment banking revenues more than halved.
Earnings at the Zurich-based bank were helped by the sale of a real estate joint venture in Japan that yielded a one-off gain of more than $800 million.
UBS’ investment banking business saw revenue fall 14% to $2.1 billion from $2.5 billion a year ago. Analysts had expected $2.3 billion.
Revenue at its wealth management division, its biggest revenue generator, was $4.7 billion, down from $4.8 billion a year ago and versus expectations for $4.8 billion.
