Plus   Neg

UBS Q2 Profit Down, Sees Elevated Credit Loss Expenses In H2; May To Resume Share Repurchase In Q4

Swiss banking giant UBS Group AG (UBS) Tuesday reported that its second-quarter net profit attributable to shareholders fell 11 percent to $1.23 billion from last year's $1.39 billion. Earnings per share were $0.33, down 9 percent from $0.37 last year.

Profit before tax declined 10 percent to $1.58 billion from prior year's $1.76 billion. UBS's second quarter 2020 results included credit loss expenses or CLE totaling $272 million. Excluding CLE, profit before tax grew 5 percent.

UBS's strong second quarter 2020 results reflected operational resilience and active client engagement, as well as the benefits of a well-diversified business model and broad regional mix.

Operating income dropped to $7.40 billion from $7.53 billion a year ago. Operating income, including CLE, declined 2 percent. Income before CLE increased 2 percent.

Looking ahead, the company noted that, due to the continued uncertainty related to the pandemic, it is reasonable to expect elevated Group credit loss expenses in the second half of 2020, but below those seen in the first half of the year.

"While it is premature to provide guidance for 2020, going forward the intention is to continue to pay out excess capital and maintain the overall capital returns to shareholders consistent with previous levels. Depending on business development and the outlook in the second half, UBS may resume share repurchases in the fourth quarter," the company said.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Industrial conglomerate General Electric Co. reported Wednesday a net loss for the third quarter that sharply narrowed from last year. Consolidated revenues rose 5 percent from last year. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. Incredible Fish, Inc. has recalled a small quantity of Incredible Stone Crab Mustard Sauce citing undeclared milk, fish, and eggs allergens, the U.S. Food and Drug Administration announced. The Miami-based wholesale seafood distributor sold the recalled product to a limited number of consumers between October 15 and October 22, 2020, primarily through the company's website. Facebook said Tuesday that it has helped 4.4 million people register to vote for the upcoming U.S. presidential election on November 3, exceeding the tech giant's goal of helping 4 million voters to register. In June, Facebook said it created a new Voting Information Center to provide users with authoritative information, including how and when to vote.
Follow RTT