UBSG: UBS Picks Up Industry-Record $29bn Quarterly Profit, Stock Jumps 5%

Did UBS need to flex that hard? The hulking figure is the biggest-ever quarterly profit for a bank. They need to thank Credit Suisse.

• UBS, the white-glove wealth manager, posted not only its biggest quarterly profit, but the biggest-ever for any bank. A hefty $29bn was picked up from the Swiss bank in Q2 largely thanks to the takeover of local rival Credit Suisse. The profit is realized from the accounting difference between the $3.4bn price tag for the absorbed lender and the value of its net assets.
• Analysts were expecting a net profit of just under $13bn for the June quarter. Underlying net profit before tax arrived at $1.1bn. UBS now oversees $5tn in client assets and is absolutely smashing it as a global wealth-management behemoth. UBS stock UBSG, traded in Zurich, jumped 5% on the news.
• UBS CEO Sergio Ermotti praised the results, saying the megabank wasted “no time in delivering value for all our stakeholders from one of the biggest and most complex bank mergers in history.” In a separate filing, the Credit Suisse subsidiary posted a Q2 net loss of 9.3bn Swiss francs ($11bn).