UBS has reported a US$1.4 billion net profit for Q2 2019, surpassing what was previously forecast due to strong results in its advisory business, which in turn enhanced its Swiss retail and corporate banking business, Channel News Asia reports. 

This 1% increase indicates that UBS’ earnings exceeded the median net profit that was projected in the bank’s own consensus poll. 

In a statement, Chief Executive Sergio Ermotti said, “In the second quarter we achieved the highest second-quarter net profit since 2010 and an improvement on an already strong second-quarter 2018.”

Its flagship wealth management business and investment bank’s profits dropped as a result of declining U.S. interest rates that impacted net interest income negatively and boosted lending competition, while key U.S. lenders have recently seen their profits and revenues drop from lower investment banking and trading fees.
 
However, the Swiss bank’s advisory business registered strong growth due to new hires in Asia and the United States and a strong deals pipeline that aided its corporate client solutions recover from lost market share. 

UBS had net new money outflows of US$2 billion in wealth management, with customers withdrawing over US$5 billion to pay taxes.