UBS reported a revenue rise in its second-quarter earnings Wednesday, as CEO Sergio Ermotti warned that geopolitical volatility might create contemporary headwinds up forward.
The Swiss banking and wealth administration big’s web revenue attributable to shareholders got here in at $2.8 billion for the three-month interval, according to forecasts by analysts in an LSEG-compiled consensus ballot.
Pre-tax earnings reached $3.6 billion within the three-month interval, up 64% year-on-year.
Talking with CNBC’s “Squawk Field Europe,” Ermotti highlighted sturdy momentum throughout the enterprise through the second quarter, with a “superb” pipeline in funding banking, M&A and capital markets, and optimistic outcomes throughout leveraged capital markets, debt capital markets, and equities.
He additionally flagged a “vibrant” IPO market, with UBS concerned in numerous offers, together with SpaceX’s landmark debut. The financial institution additionally unveiled a brand new $3 billion share buyback plan, beginning with the repurchase of $1 billion of shares over the following three months.
UBS shares have been 2.5% larger in morning commerce.
Ermotti acknowledged geopolitical fissures stay a stress level for markets, however shrugged off potential rising market fatigue across the AI narrative.
UBS.
“Clearly the continued volatility we see coming from the geopolitical entrance could create some type of momentary headwinds,” he instructed CNBC’s Carolin Roth. “However the momentum is nice — we’re well-positioned to seize the advantages of that.”
On AI, Ermotti mentioned that given the tempo and scope of the growing market caps and focus during the last three-to-four months, a correction was to be anticipated.
“It is solely wholesome to see it. We advise purchasers in that context all the time to essentially diversify,” Ermotti mentioned.
He mentioned that AI and its supporting infrastructure will proceed to stay a “massive issue” in markets, including that the financial affect and advantages of AI will play out throughout many different sectors past the present focus.
“It is a large alternative that we may give to our purchasers to diversify and make investments for the longer term.”
