UBS reported over 50% growth

Swiss bank UBS reported over 50% growth in its net profit in the second quarter, surpassing analysts’ expectations for high growth rates and signaled the growing confidence about future profitability. According to CEO Sergio Hermon institution has gained “good momentum” in the beginning of the second half of 2015, transmits Reuters.
Zurich-based UBS published its financial results for the quarter day earlier than the preliminary schedule to rebut the “incorrect and misleading information” referred to in the report on the results published by the Swiss weekly Sonntagszeitung. On Sunday newspaper quoted an unnamed source as saying the bank will report 25% profit growth for the quarter.
Above expectations
For the period April-June net profit of the largest institution in the country is 1.2 billion. Swiss francs (1.25 billion. Dollars), increasing by 53% compared to those reported for the same period last year 792 million. Francs. Expectations of analysts polled by Reuters was for a much more modest growth – by 3.2%. Earnings for the second quarter was affected by costs of nearly 300 million. Dollars, the bank had to make in connection with allegations that he helped wealthy Germans avoid taxes.
“I am confident that we are entering the second half of the year with good momentum,” said Hermon to CNBC. The manager notes, however, some seasonal problems related to the third quarter, which is often more quiet period for the business, and some geopolitical and macroeconomic hurdles, adds Reuters. Hermon states that the bank will investigate whether publication in the Sonntagszeitung, which quoted an anonymous source is a result of internal leakage of information or speculation on the part of the newspaper.
UBS shares fell 1.6 percent on Monday morning, the decline was slightly weaker than the overall decline of 1.8% on the broader European banking index .SX7P., The agency notes.
Strategy Implementation
“These results show the company that manages to implement its strategy,” commented analyst at Bank of America Merrill Lynch Andrew Stimpson.
In February UBS announced that it has completed the job with the 2012 major transformation of its business, which include drastic contraction of investment banking and turning the focus to the management of personal resources (wealth management).
Over the past quarter the bank is bolstered their capital buffer, which is a measure of its ability to cope with the crisis to 14.4% of risk-weighted assets compared to 13.7% at the end of the first quarter and at the end of at least 13%, says Reuters.
By UBS also contend that US-based brokerage business of the bank is not for sale. The division reported a 6 percent drop in profit before tax for the second quarter, partly due to costs and provisions related to legal claims. According to Hermon however the unit is key to the overall strategy of the Swiss private banking institution, transmits agency.