UBS Q2 profits exceed expectations

Swiss banking giant UBS has today reported a net profit of SwFr2.0 billion (£1.2 billion, $1.9 billion) for the April to June period – exceeding analysts’ expectations.

The news will be welcomed by many investors after the bank was among one of the worst hit victims of the credit crunch due to its exposure to the sub-prime mortgage crisis in the US and suffered substantial losses as a result.

Meanwhile the bank, which is Switzerland’s largest, said net new money outflow during the three month period was reduced to SwFr4.7 billion, against SwFr18 billion in the January to March period.

The bank has been at the centre of an investigation by US authorities involving alleged tax evasion by its clients.

However, the bank said today it expects to “achieve a comprehensive resolution of all outstanding matters with the US government related to the US cross-border business by October 2010.”

The figures come just a few days after Credit Suisse, which is Switzerland’s second-largest bank, exceeded expectations by reporting second quarter profits of SwFr1.6 billion (£1 billion).

Compared to the same three-month period a year ago, earnings at Credit Suisse were 1% higher but were down 22% when compared with the first quarter of the year.

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