UBS sees 58% net profit drop as trade revenue, client fees dry up


AP

GENEVA — Swiss banking giant UBS AG posted second-quarter net profits of 425 million francs (US$434.16 million) Tuesday, a sharp plunge from the 1.02 billion Swiss francs (US$1.2 billion) it posted in the comparable period a year ago.

Hit by lower trading revenue and fewer commissions and client fees, Switzerland’s largest bank said the 58 percent net profit drop reflects “challenging conditions marked by increased volatility and greater client caution.”

The Zurich-based bank emphasized as it has in previous quarters the effect of the eurozone debt crisis and the poor economic outlook globally.

Chief Executive Sergio P. Ermotti told investors in a statement that going forward UBS will continue to focus on “prudent liquidity management, further reducing risk-weighted assets and delivering the best possible service to our clients.”