UBSG: UBS Stock Jumps 3% on Revenue Beat, Net Profit Surges to $1.1 Billion

UBS posted a blowout June-quarter profit, doubling what analysts expected. However, shares are just about flat for the year.

• UBS stock UBSG powered higher by more than 3% out of the gate for the European session after the Swiss bank reported a solid net profit, double what analysts expected. For the three months to June, UBS picked up $1.1 billion in net profit, blasting beyond consensus forecast of $528 million. Revenue for the period arrived at $11.9 billion, up 25% from the year-ago quarter and above the $11.6 billion expected.
• ”We are well positioned to meet our financial targets and return to the levels of profitability we delivered before being asked to step in and stabilize Credit Suisse,” said chief executive Sergio Ermotti. “We are now entering the next phase of our integration.” The Swiss lending giant completed its merger (not without some digestive issues) with Credit Suisse in May, roughly 18 months after the fallen rival reached out with a plea for rescue.
• The megabank’s wealth division received a fresh $27 billion injection of net new assets, the same as the previous-quarter figure. UBS said it is now looking to wrap up 2024 with cumulative gross savings from the Credit Suisse deal of $7 billion, out of a target of $13 billion by 2026. Shares of the heavyweight bank are up a moderate 3.5% year-to-date after mostly zig-zagging their way throughout the year so far.