UBS posts 2.0 billion francs in second quarter net profit

27th July 2010, Comments 0 comments

Swiss banking giant UBS on Tuesday posted a net profit of 2.0 billion francs (1.5 billion euros, 1.9 billion dollars) for the second quarter, beating analysts' expectations.

Analysts polled by the economics news agency AWP had predicted a profit of 1.1 billion francs between April to June this year.

The bank's earnings marked a turnaround from a loss of 1.4 billion francs reported during the same period last year, and marked its third consecutive profitable quarter after colossal losses incurred during the financial and economic crises.

The bank also reported that a problem with funds outflow was easing.

During the quarter, net new money outflow was reduced to 4.7 billion francs, compared to 18 billion francs in the first quarter.

Due to uncertainties arising over a tax evasion lawsuit filed by the United States as well as a loss in client confidence following losses during the financial crisis, the bank had recorded a sharp increase in net new money outflows as clients took their assets elsewhere.

UBS said on Tuesday that it expects to "achieve a comprehensive resolution of all outstanding matters with the US government related to the US cross-border business by October 2010."

This was made possible after the Swiss parliament in June approved a landmark accord between the US and UBS, allowing the bank to pass on data on some US clients to the country's tax authorities.

© 2010 AFP

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