By comparison, US banks recorded an average 31% gain in trading fixed income, currencies and commodities in the quarter, and an 8% average boost to equities trading revenues.
UBS confirmed its plans to buy back around $5 billion in shares this year, with more than $3 billion already completed in the first half.
The lender also signaled the potential for higher litigation provisions relating to a long-running French tax evasion case, and said that in general, the bank continues to be “exposed to a number of significant claims and regulatory matters.”
UBS confirmed it is cooperating with US authorities on a probe “relating to business communications sent over unapproved electronic messaging channels” -- a reference to the regulatory crackdown on using services including WhatsApp that’s set to cost investment banks including Morgan Stanley about $1 billion in fines.
Russia’s invasion of Ukraine has sent a jolt through markets as investors tap banks for protection against inflation, hedge against currency swings and take positions in choppy stock markets. European lenders are also benefitting from the first increases in official interest rates in more than a decade.
Earlier this year, UBS said it halted all new business in Russia, where it had about 70 employees, and is in the process of reducing its exposure to the region. Since then, the bank disclosed a $100 million hit from Russia-related transaction settlements in the first quarter and said it could rise in the second quarter.
After surpassing the $3 trillion mark in assets under management, the Swiss bank under Hamers is counting on greater use of digital technology to boost cost savings and increase business with the world’s wealthy. UBS agreed to buy US robo-adviser Wealthfront in January and has launched several mobile applications in Europe and Asia, seeking to encourage clients to engage on investments in the same way they browse Netflix for movies.
Earlier this month UBS appointed Iqbal Khan as sole head of the global wealth-management business, potentially setting him up as an eventual successor to Hamers. Tom Naratil, who co-led the private-banking business with Khan, is leaving UBS after 39 years with the firm, stepping down as co-head of wealth and president of UBS’s business in the Americas.
New UBS Chairman Colm Kelleher along with Hamers has met with major U.S. investment houses over the past few months in a bid to convince them to increase their holdings, as they seek to strengthen the lender’s position as a global bank and offset the slowdown in Asia.
This article was provided by Bloomberg News.