GENEVA (AP) - Switzerland's biggest bank, UBS, reported Tuesday a 15 percent rise in second-quarter profit, driven by strong results from its core wealth management business and trimmed-down investment banking franchises despite a tough market environment.
GENEVA (AP) — Switzerland's biggest bank, UBS, reported Tuesday a 15 percent rise in second-quarter profit, driven by strong results from its core wealth management business and trimmed-down investment banking franchises despite a tough market environment.
UBS said its net profit for the April-June period rose to 792 million Swiss francs ($876 million) from 690 million francs in the comparable period in 2013.
The Zurich-based bank also said it had settled an investigation in Germany of charges that the bank aided German clients suspected of evading taxes. UBS made a payment of about 300 million euros ($403 million) to put the case to rest, one of a number that it and other Swiss banks have been facing from U.S. and other foreign tax authorities hunting down suspected tax cheats.
The bank said its second-quarter results reflect 120 million francs it booked in the German case.
Prosecutors in the German city of Bochum confirmed the settlement. They said they expect also to close proceedings against individual bank employees in exchange for fines, and that in one case they have sought a 250,000-euro fine.
UBS's quarterly financial statement said all of its business divisions and regions delivered strong second-quarter operating performances, and that it continued to build its capital reserves in keeping with global and Swiss rules.
"We delivered strong underlying results in a market environment that remained challenging for our clients and the industry," Chief Executive Sergio Ermotti said.
Looking ahead, the bank said the outlook is clouded by challenges in Europe, where economic growth remains fragile and fiscal and monetary policy issues in the U.S., where the Federal Reserve is gradually tightening its stimulus taps. It also cited global geopolitical instability, with Western powers considering more sanctions on Russia and with fighting on the rise parts of the Middle East.
UBS shares slid 1.4 percent to 16.38 francs in Zurich trading.