UBS Stock Up 3%, Company Reports 63% Jump in Net Profits in Q2 2021

UBS Stock Up 3%, Company Reports 63% Jump in Net Profits in Q2 2021

UBS said the huge net profit during Q2 is partially due to continued momentum in flows and volume growth.

Steve Muchoki By Steve Muchoki Updated 3 mins read
UBS Stock Up 3%, Company Reports 63% Jump in Net Profits in Q2 2021
Photo: Depositphotos

UBS Group AG (NYSE: UBS) stock saw a gain of as much as 3.7% and traded as high as $15.05 during today’s pre-market. And now as the market is ioned, the stock is 2.85% up. The gains negated yesterday’s 2.22% loss that saw UBS shares close the day trading at $14.54. Today’s spike on the largest private bank was attributed to second-quarter earnings that beat analysts’ expectations. According to media outlet CNBC, UBS reported a net profit of $2 billion, 63% higher than last year’s Q2, versus analysts’ expectations of $1.34 billion according to Refinitiv.

The investment firm attributed its notable success to favorable market conditions and investor sentiment. Additionally, UBS said the huge net profit during Q2 is partially due to continued momentum in flows and volume growth.

During the last three months of the first half of 2021, UBS recorded an operating income of $8.98 billion in comparison to $7.4 billion last year. Additionally, the return on tangible equity stood at 15.4% versus 9.7% recorded during the same time last year.

UBS Q2 Earnings and Stock Market Outlook

This year, UBS measure of bank solvency hit 14.5% in comparison to 13.3% recorded during the second quarter of 2020. The notable growth has been attributed to more money flowing to the savings accounts during the coronavirus pandemic. Moreover, most of the upper class of wealthy people in the society saw their wealth rise during the coronavirus outbreak.

“Our growth in the second quarter was underpinned by the relationships we have built and strengthened throughout the pandemic and by the trust our clients placed in our people and in our firm. All business divisions and all regions contributed to our results,” UBS CEO Ralph Hamers said in a statement.

“Momentum is on our side and our strategic choices and initiatives are paying off. And we are eager to make the most of the future.”

During the second quarter, UBS flagship Global Wealth Management division recorded the largest profit of up to 47% before tax to $1.3 billion. Hamers told CNBC that a notable momentum helped the company record one of its best quarters.

With a market capitalization of $50 billion, UBS stock market has risen approximately 18%, and 2.90% in the past year and seven months respectively through Monday. However, during the past three months, one month and five days, UBS stock has dropped approximately 6.62%, 5.71%, and 3.38% respectively.

A study conducted by MarketWatch indicates UBS stock received an average of Over rating from 22 ratings.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Business News, Market News, News, Stocks, Wall Street
Steve Muchoki
Author Steve Muchoki

Let’s talk web3, crypto, Metaverse, NFTs, CeDeFi, meme coins, and Stocks, and focus on multi-chain as the future of blockchain technology. Let us all WIN!

Steve Muchoki on LinkedIn