Jump to content
Your browser is out of date. It has known security flaws and may not display all features of this websites. Learn how to update your browser[Close]

Bank profits

UBS and Credit Suisse – reasons to be cheerful

By swissinfo.ch

 See in other languages: 5  Languages: 5

Switzerland’s two largest banks, UBS and Credit Suisse, have both reported drops in net profit for the second quarter. However, both banks have reasons to be relatively happy.

On Friday, UBS reported a 14% drop in net profit, citing “pronounced low client activity” amid economic and geopolitical uncertainties and other market weaknesses. Nevertheless, the profit of CHF1.03 billion ($1.05 billion) was better than expected, topping average analysts’ estimates - as polled by Reuters - of CHF495 million.

The bank said market volatility, macroeconomic uncertainty and “heightened geopolitical tensions” made worse by Britain’s vote on June 23 to leave the European Union dampened clients’ appetite for risk and lowered transaction volumes. It said such conditions were unlikely to change in the foreseeable future.

The UBS results came a day after rival Credit Suisse unexpectedly returned to profit, with all operating units contributing to its first positive result since CEO Tidjane Thiam set out to reinvent the bank.

Second-quarter net income fell 84% to CHF170 million, compared with CHF1.05 billion a year earlier. Analysts were expecting a loss of CHF178 million, according to the average of five estimates compiled by Bloomberg.

Sign up for our free newsletter and get the top stories delivered to your inbox.



All rights reserved. The content of the website by swissinfo.ch is copyrighted. It is intended for private use only. Any other use of the website content beyond the use stipulated above, particularly the distribution, modification, transmission, storage and copying requires prior written consent of swissinfo.ch. Should you be interested in any such use of the website content, please contact us via contact@swissinfo.ch.

As regards the use for private purposes, it is only permitted to use a hyperlink to specific content, and to place it on your own website or a website of third parties. The swissinfo.ch website content may only be embedded in an ad-free environment without any modifications. Specifically applying to all software, folders, data and their content provided for download by the swissinfo.ch website, a basic, non-exclusive and non-transferable license is granted that is restricted to the one-time downloading and saving of said data on private devices. All other rights remain the property of swissinfo.ch. In particular, any sale or commercial use of these data is prohibited.