Wealth management sends UBS profits soaring

Swiss banking giant UBS said Tuesday its second quarter profits leapt 63 percent on the back of a strong performance by its wealth management division.

The net profit of $2 billion (1.7 billion euros) was well above the $1.4 billion forecast by Swiss agency AWP.

Operating income, the equivalent of revenue, jumped 21 percent to $8.9 billion, UBS said in a statement.

Pre-tax profits on its wealth management business, the bank's traditional pillar, surged 47 percent from the same period a year ago to $1.2 billion, driven by the good performance of the financial markets and an increase in commissions.

The division garnered a net influx of $25 billion in new money.

Its investment bank also saw pre-tax profits rise 9 percent to $688 million.

"Our growth in the second quarter was underpinned by the relationships we have built and strengthened throughout the pandemic and by the trust our clients placed in our people and in our firm," CEO Ralph Hamers said in the statement.

"All business divisions and all regions contributed to our results."