Asia Pacific profits for UBS Global Wealth Management surged over 70 percent in the second quarter due to stronger trading activities despite a slowdown in the global business.
APAC profit before tax reached $233 million, up $97 million year-on-year, due to significantly higher income, according to the bank's latest results. Strong transaction-based income and net interest income from deposit revenue and loan growth led to an over six-fold increase in revenue from $104 million to $658 million, though net new loans were negative due to client deleveraging in the second quarter.
Profit growth in the region contrasts with UBS’s global business which saw profits tumble due to expected loan provisions. The bank posted a 12 percent drop in pre-tax profits due in no small part to $272 million in credit losses, mostly in from its Swiss business.
Flat New Money
The region also registered lackluster net new money at just $200 million, compared to $1.1 billion last year. The bank globally posted $9.2 billion in new assets, dominated by the EMEA (Europe, Middle East and Africa) region’s $8 billion.
Overall, Asia was home to $449 billion in assets under management, accounting for 17 percent of the total globally.
