Switzerland’s biggest bank, UBS AG (NYSE:UBS), reported impressive earnings for the second-quarter, especially in its wealth management division that saw profits rise by 15%, which according to its CFO in an interview on CNBC can be attributed to the stable growth of the U.S economy. The core wealth management business performed well in the quarter aiding the company’s stellar results.
UBS AG (NYSE:UBS)’s CFO, Tom Naratil, could not fail to advise investors to pay a closer watch on the U.S and Canadian equities as some of the places where the company remains favorable as well as the North American energy boom that the company is closely monitoring.
“We look at the U.S economy we fill quite well about the growth that we see. What we are advising our clients to do. U.S equities and Canadian equities are actually where we are quite favorable also the theme of North American energy is one that we are very focused on,” said Mr. Naratil.
UBS AG (NYSE:UBS)’s clients continue to hold excess amount of cash, according to the CFO, attributed to the fact that parts of Europe and other places around the globe are not growing at the same pace as the U.S. economy. Wealth management in America for the company achieved a milestone in the quarter as the company surpassed the trillion-dollar mark, in terms of invested assets. Representing a quarter of trillion, increase in just less than three years.
Productivity for the company’s financial advisers remains at a record high, at $1.1 million, and the best in the industry. UBS is also boasting of a business portfolio that generates more than a billion in pretax profit.
“[…] We had a great milestone that we achieved in wealth management in America, this quarter. We surpassed a trillion dollar in invested assets; that is an increase of a quarter of a trillion over just three years ago. Productivity for our Financial Advisers is the highest in the industry and at a record high, at $1.1 million, and we have a business that generates more than a billion dollars in pretax profit a year so we are happy with our performance in WMA,” said Mr. Naratil.
UBS AG (NYSE:UBS) net profit for the second quarter rose from 690 Swiss francs to a high of 792 Swiss francs having settled an investigation in Germany where it was accused of aiding some clients evade paying taxes. The bank was forced to pay $403 million to put the case to rest.