UBS Net Profit Beats Expectations as Credit Suisse Savings Accelerate — Update

By Adria Calatayud

UBS Group reported a second-quarter net profit that doubled analysts' estimates and raised its year-end target for savings from its integration of former rival Credit Suisse.

The Zurich-based banking group said Wednesday that net profit was $1.14 billion compared with $27.33 billion for the same period last year, when it booked a $29 billion accounting gain on its takeover of Credit Suisse.

This was UBS's second consecutive quarterly net profit and more than doubled analysts' forecasts of $528 million, according to consensus estimates compiled by the bank.

UBS has been shedding noncore assets, merging different entities and cutting jobs as part of its work to integrate Credit Suisse after last year's rescue deal engineered by Swiss authorities.

The bank said it now expects to end 2024 with cumulative gross savings from the Credit Suisse deal of $7 billion, out of a target of $13 billion by 2026 compared with a 2022 baseline. It had previously aimed to deliver $6.5 billion in savings by the end of the year.

On an underlying basis, pretax profit was $2.06 billion compared with $891 million a year before and consensus estimates of $1.61 billion.

Revenue for the quarter rose to $11.90 billion from $9.54 billion, against consensus expectations of $11.55 billion.

UBS's key global wealth management business attracted $27 billion in net new assets, in line with the inflows it recorded in the first quarter.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

August 14, 2024 01:36 ET (05:36 GMT)

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