UBS posts net profit beat as market volatility boosts trading

## UBS Soars: Q2 Profits Double, But Headwinds Remain

UBS, the Swiss banking giant, had a strong second quarter, but challenges loom on the horizon. Here’s a quick rundown of the key takeaways:

• **Profitability Soars:** Net profit doubled year-on-year, reaching $2.395 billion, exceeding analyst expectations.
• **Revenue Mixed:** Total revenues were $12.112 billion, slightly below forecasts.
• **Investment Banking Boost:** The global markets unit saw a 25% revenue increase, fueled by market volatility.
• **Wealth Management Gains:** Transaction-based income in the wealth management division rose by 12%.
• **Net Interest Income (NII) Surprises:** NII reached $1.965 billion, defying expectations of a decline. The bank anticipates stable NII in the coming quarter.
• **Interest Rate Concerns:** The Swiss National Bank’s return to 0% interest rates and the strength of the Swiss franc pose challenges.
• **US Market Exposure:** UBS shares have been affected by exposure to the US market and global trade uncertainties.
• **Regulatory Hurdles:** UBS faces a battle with Swiss authorities over proposed capital requirements, which could significantly impact the bank’s operations.

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