European investment bank and wealth manager UBS has amazed industry analysts by reporting a 47% jump in its second quarter profits compared to last year as business boomed across the firm's many divisions.
UBS says net profit attributable to its shareholders reached CHF3,147 million in the second quarter of 2006, up from CHF2,147 million in the same period a year earlier.
Financial businesses contributed CHF3,032 million to attributable net profit, up 51% from a year earlier. The result was close to the all-time record set in first quarter 2006. In first half 2006, attributable profit from the financial businesses was CHF6,080 million, an increase from CHF4,538 million in the same period a year earlier.
Global wealth m,nagement & business banking achieved pre-tax profits of CHF2,094 million in second quarter 2006, while invested assets totaled CHF2,657 billion at the end of June.
The asset management arm achieved pre-tax profits of CHF334 million in second quarter 2006, down 11% from CHF374 million in first quarter 2006, but 52% higher than CHF220 million in second quarter 2005.
Our performance was strong – and achieved despite the market reversal in the middle of May. Recurring income continued to benefit from the high levels of invested assets. Underwriting fees were at a record. Corporate finance and brokerage fees rose, as did revenues from trading activities, said Clive Standish, company CFO.