UBS Group AG (NYSE:UBS) shares opened 1.4% higher on Wednesday following the bank's stronger-than-expected second-quarter results, reporting a net profit of $1.1 billion - double analysts' forecasts.
The impressive performance was driven by gains in the investment banking sector and progress in integrating Credit Suisse.
UBS posted $11.9 billion in revenue for the quarter, a 25% increase from the previous year, slightly surpassing expectations.
CEO Sergio Ermotti expressed confidence in the bank’s ability to meet financial targets and return to pre-Credit Suisse acquisition profitability.
UBS's wealth management business maintained steady inflows, attracting $27 billion in new assets. The investment banking division saw a 38% revenue increase, reaching $2.8 billion.
UBS also reported $900 million in cost savings, contributing to its goal of achieving 45% of its annualized cost-saving target.
Despite these positive results, analysts noted that the strong performance was largely driven by non-core businesses, while wealth management and corporate banking underperformed.