Swiss banking major UBS Group posted net profits of $2.1bn in Q2 2022, 1% higher YoY. Despite the slight increase, it fell short of analysts’ expectations of $2.4bn, as per Bloomberg. Revenues stood at $8.9bn, largely flat vs. Q2 2021. Revenues from Global Wealth Management (GWM) contracted by 2% YoY to $4.6bn. While GWM saw a 24% jump in net interest income driven by rising interest rates, it was more than offset by a 6% and 17% slump in net fee income and transaction based income respectively. Across the other divisions, Personal and Corporate Banking revenues increased 2% to CHF 1bn ($1.04bn) and Investment Bank revenues decreased 14% YoY to $2.1bn. Meanwhile, Asset Management revenues increased 276% to $1.37bn, mostly due to the bank’s divestment of its stake in a JV with Mitsubishi. Ralph Halmers, UBS’s CEO said, “We saw private clients, given all the uncertainty, sidelining their money and waiting for things to clear up…the second quarter was one of the most challenging periods for investors in the last 10 years.” UBS ended the quarter with a CET1 ratio of 14.2%, down 30bp compared to 14.5% one year ago.
UBS’s 4.375% perps callable in 2031 are trading at 77.9, higher by 1.17 points, yielding 7.01%.