UBS APAC Profits Surge Despite Global Setback
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Asia Pacific profits for UBS surged over 70 percent in the second quarter due to stronger trading activities despite a slowdown in the global business.
APAC profit before tax at UBS reached $233 million, up $97 million year-on-year, due to significantly higher income, according to the bank’s latest results. Strong transaction-based income and net interest income from deposit revenue and loan growth led to an over six-fold increase in revenue from $104 million to $658 million, though net new loans were negative due to client deleveraging in the second quarter.
Profit growth in the region contrasts with UBS’s global business which saw profits tumble due to expected loan provisions. The bank posted a 13 percent drop in pre-tax profits due in no small part to $272 million in credit losses, mostly in from its Swiss business.
The region also registered lackluster net new money at just $200 million, compared to $1.1 billion last year. The bank globally posted $9.2 billion in new assets, dominated by the EMEA (Europe, Middle East, and Africa) region’s $8 billion.
Overall, Asia was home to $449 billion in assets under management, accounting for 17 percent of the total globally.
Questions & Answers
Q.What was the main reason for the significant increase in UBS's Asia Pacific profits in the second quarter?
What was the main reason for the significant increase in UBS's Asia Pacific profits in the second quarter?
Stronger trading activities led to significantly higher income in the Asia Pacific region. This was driven by transaction-based income and net interest income from deposit revenue and loan growth.
Q.How did the second quarter profit performance in Asia Pacific compare to UBS's global business?
How did the second quarter profit performance in Asia Pacific compare to UBS's global business?
Asia Pacific profits surged by over 70 percent, reaching $233 million. This contrasted with a 13 percent drop in UBS's global pre-tax profits, primarily due to expected loan provisions and credit losses.
Q.Despite the profit surge, what was the performance like for net new loans and net new money in the Asia Pacific region?
Despite the profit surge, what was the performance like for net new loans and net new money in the Asia Pacific region?
Net new loans were negative due to client deleveraging in the second quarter. The region also registered lackluster net new money at just $200 million, a significant drop from $1.1 billion last year.
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