Profits up 79% at UBS

14 August 2007

Swiss bank UBS has posted a 79 per cent increase in second-quarter net profits of $4.669 billion - up from $2.65 billion for the year ago period.

The bank's performance was assisted by the sale of its 20.7 per cent stake in Swiss private bank Julius Baer for $1.59 billion.

Meanwhile, net new money from wealth management stood at $29.1 billion, while net fee and commission income hit a record high of $6.7 billion - up 26 per cent from last year's figure.

However, despite the better than expected performance, the bank warned that ongoing turbulence in the market would most likely mean that profits will be down in the second half of the year.

UBS chief executive Marcel Rohner said: "If the current turbulent conditions prevail throughout the quarter, UBS will probably see a very weak trading result in the investment bank, offset by predictable earnings from wealth and asset management.

"This makes it likely that profits in the second half of 2007 will be lower than in the second half of last year."

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