Major Swiss bank UBS, which is also one of the world's largest asset managers, exited this year's second quarter with mixed results from its important Global Wealth Management division, Bloomberg reports.
Most notably, the bank recorded net cash outflows worth around USD 2bn. UBS mainly attributes this decline to wealthy US customers having withdrawn their cash to pay due taxes. In total, US tax-related withdrawals came to USD 5.1bn. Thus, the underlying business has grown.
The WM unit had USD 2,490 in assets under management at the end of the second quarter. UBS Chief Executive Sergio Ermotti expresses satisfaction with the result to Bloomberg Television late Tuesday morning.
"The performance we had in the second quarter is a strong one, but that doesn’t make us complacent about the environment," Ermotti tells Bloomberg Television in an interview, adding:
"It’s quite clear that if I look at, for example, the investment bank activities, the revenue pressure is there to stay in the industry."
Similarly for the Global Wealth Management division, UBS reports lower net interest income. Loan revenue slid USD 75mn against the preceding year.
UBS previously announced that it aims to save USD 300mn due to uncertain market projections. Conversely, analysts have speculated that rival Deutsche Bank's problems within investment banking present a open opportunity for UBS to gain market shares.
English Edit: Daniel Frank Christensen