Swiss giant UBS saw revenues slide 23%in the 2nd quarter as it warns of credit losses ahead due to COVID-19

• UBS published a 23%quarterly drop in earnings in the 2nd quarter as coronavirus continues to strike Europe’s banking sector.
• Net income fell from simply shy of $1.6 billion in the first quarter, to $1.23 billion in the second, it stated.
• On a year-on-year basis, earnings fell 11%from the $1.39 billion income seen in the 2nd quarter of 2019.
• Credit losses were $540 million for the first half of the year, and the bank alerted of “elevated group credit loss expenditures” in the 2nd half of the year.
• UBS stated it was reviewing its money dividends and share repurchases due to COVID-19, including it may resume it share repurchases in Q4.
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Swiss banking giant UBS saw its net profit fall 23%in the 2nd quarter as the COVID-19 took its toll and the bank cautioned of more credit losses due to the pandemic.

Net income fell from just shy of $1.6 billion in the very first quarter, to $1.23 billion in the second, 23%lower. On a year-on-year basis, earnings fell 11%from the $1.39 billion income seen in the 2nd quarter of 2019.

The bank likewise reported credit losses of $272 million in the 2nd quarter and $540 million for the first half of the year as it cautioned of additional losses due to COVID-19.

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UBS said in its profits statement: “Provided the continued unpredictability associated to the pandemic, it is sensible to anticipate raised Group credit loss expenditures in the second half of 2020, however below those seen in the very first half of the year.”

CEO Sergio Ermotti included: “As we continue to face a tough environment, we are adjusting and accelerating the pace of change, supporting our clients, staff members, and the economies in which we operate, while remaining concentrated on our tactical concerns.”

The bank is also reviewing its cash dividends and share repurchases.

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The bank said: “While it is early to provide guidance for 2020, going forward the intention is to continue to pay excess capital and maintain the general capital returns to shareholders constant with previous levels.

” Depending on business development and the outlook in the 2nd half, UBS might resume share repurchases in the fourth quarter.”

UBS Wealth Management, which declares to be the world’s largest wealth manager, published profit prior to tax of $880 million, up 1%year-on-year.

UBS’ share rate climbed up by around 3%in morning sell Europe.

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