Of Special Interest
Filters
- Newslink Trends-The Global Strategic Perspective
- Juniper Research says digital wallet users to exceed 4.4 billion by 2025, as mobile drives digital payments’ revolution
- Criminals exploit COVID-19 pandemic with rise in scams targeting victims online
- Equifax says Open Banking proving pivotal to pandemic lending
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Mintos says Europeans are starting to embrace investing
- US banks see IT modernisation as a way to improve customer experience
- Risk mitigation in global trade depends on digitisation-Andrew Raymond, CEO, Bolero International comments
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
29th July 2011
UBS result
UBS reported Q2 net attributable of CHF 1,015m (€873m £770m $1,263m ¥98.6bn Y8,137m) and half year of CHF 2,822m (€2,426m £2,141m $3,511m ¥274.2bn Y22,624m) DOWN 49% and 33% respectively.
The good news from the accounts is that net interest income both before and after the inclusion of credit loss expenses is up significantly - up 32% and 11% before credit losses. Even more important is the FALL in total operating expenses DOWN 16% and 9% respectively.
The bad news is the collapse of the non-interest income, DOWN 30% in Q2 and 19% for the half year. Trading income is down by one half in Q2 and Q2 is DOWN 22% compared with Q1. Although it had been no secret that UBS FICC was not doing well the extent to which it has fallen raises serious questions. Some have questioned the degree tow which this is policy, and some have welcomed the reduction from the business considered higher risk. The bank denies it wants to stop or has a plan to reduce significantly this business. The danger is of a continued spiral where the failing in FICC and other investment banking businesses encourages more to leave the bank and hence worsens the situation. The situation is worsened if some of the key investment bankers are not entirely sure of the true support from the CEO and Chairman, which is suggested may be the case.
The bank reported an inflow in Net New Money of CHF8.7bn.
Income summary Q2 Change* Half yr Change*
CHFm % CHFm %
Continuing operations
Interest income 4,880 0 9,457 -2
Interest expense -3,440 -9 -6,236 -8
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Net interest income 1,440 32 3,221 11
Credit loss (expense) / recovery 16 -- 19 -72
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NII after credit loss expense 1,456 39 3,240 9
Net fee and commission income 3,879 -11 8,119 -7
Net trading income 1,724 -50 3,928 -32
Other income 112 -65 228 -65
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Total operating income 7,171 -22 15,515 -15
Personnel expenses 3,925 -16 8,332 -9
General and administrative expenses 1,408 -14 2,896 -5
Depreciation of property and equipment 161 -37 352 -28
Amortization of intangible assets 22 -29 46 -21
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Total operating expenses 5,516 -16 11,626 -9
Operating profit - continuing operations 1,654 -37 3,889 -28
Tax expense / (benefits) 377 21 803 -12
_________________________________
Net profit from continuing operations 1,277 -45 3,086 -32
Net profit from discontinued operations 1 0 1 -50
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Net profit 1,278 -45 3,087 -32
Non-controlling interests 263 -45 265 -13
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Attributable to UBS shareholders 1,015 -49 2,822 -33
Operating Profit by divisions
Wealth Management 672 2 1,318 -3
Retail & Corporate 421 -11 824 -12
Wealth Management & Swiss Bank 1,094 -3 2,142 -7
Wealth Management Americas 140 -- 252 -52
Global Asset Management 108 -8 231 -9
Investment Bank 376 -71 1,211 -52
Corporate Center -63 53 425 -88
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Operating profit - continuing operations 1,654 -37 3,889 -28
* change compared with respective period in 2010
-- Not possible to calculate usually because of one positive and one negative number