UBS posts net profit beat as market volatility boosts trading

## UBS Soars in Q2, But Uncertainty Looms

UBS, the Swiss banking giant, had a strong second quarter, but faces headwinds from regulatory pressures and global economic uncertainty. Here’s a breakdown:

• **Profitability:** Net profit more than doubled year-on-year, reaching $2.395 billion, exceeding analyst expectations.
• **Revenue:** Total revenue reached $12.112 billion, slightly below forecasts.
• **Investment Banking Boost:** The global markets unit saw a 25% revenue increase, while global wealth management income rose 12%.
• **Cautious Outlook:** CEO Sergio Ermotti noted a “wait-and-see” attitude among clients, despite a healthy market environment.
• **Net Interest Income (NII):** NII was $1.965 billion, exceeding expectations, but the bank anticipates “broadly stable” NII in the coming quarter.
• **Credit Suisse Integration:** The integration of Credit Suisse is “on track,” with significant progress in client account migration and cost savings.
• **Share Buybacks:** UBS completed $1 billion in share buybacks in the first half of the year, with another $2 billion planned.
• **Capital Requirements:** UBS is in a dispute with Swiss authorities over proposed new capital rules, which could require the bank to hold an additional $26 billion in core capital.
• **Market Sentiment:** Investor sentiment remains constructive but is tempered by macroeconomic and geopolitical uncertainties.

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