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31st July 2012
UBS profits down more than one half
UBS announced shareholder attributable profit for Q2 of CHF425m (€354m £276m $433m ¥33.9bn Y2,765m) and half year of CHF1,252m (€1,042m £813m $1,277m ¥99.8bn Y8,144m). The profit was down 58% and down 56% on the respective periods of 2011.
Income was down 17% for the half year and expenses by only half this amount. The main cause of the income fall was trading income though it should be noted that all sources of income were down. The bank focuses on its success in reducing weighted assets which necessarily cause a reduction in income. The investment bank made a CHF 130m LOSS in Q2 forced by a CHF349m LOSS on the Facebook IPO fiasco.
Income summary six months to June 30th 2012 2011 Change
CHFm CHFm %
Interest income 8,527 9,457 -9.8
Interest expense (5,542) (6,236) -11.1
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Net interest income 2,984 3,221 -7.4
Credit loss (expense) / recovery 35 19 84.2
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Net interest income after credit loss 3,020 3,240 -6.8
Net fee and commission income 7,492 8,119 -7.7
Net trading income 2,330 3,928 -40.7
Other income 92 228 -59.6
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Total operating income 12,934 15,515 -16.6
Personnel expenses 7,244 8,332 -13.1
General and administrative expenses 3,050 2,896 5.3
Depreciation of property and equipment 337 352 -4.3
Amortization of intangible assets 48 46 4.3
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Total operating expenses 10,678 11,626 -8.2
Operating profit before tax 2,256 3,889 -42.0
Tax expense / (benefit) 729 803 -9.2
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Net profit 1,526 3,087 -50.6
Attributable to non-controlling interests 274 265 3.4
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Attributable to UBS shareholders 1,252 2,822 -55.6
