Swiss investment bank UBS has reported its financial results for the second quarter of 2011, including pre-tax profits of CHF1.7bn.
This is significantly down on the CHF2.2bn pre-tax profits of Q1 2011 and compares unfavourably with the CHF2bn net income of the corresponding quarter last year.
Net profits came to CHF1bn, half that of Q2 2010, and CHF800m less than the net profit made in the immediately preceding quarter.
UBS saw a strengthening of its BIS tier 1 capital ratio, from 17.9% last quarter to 18.1%, but group revenues fell by 14% to CHF7.2bn.
Group Chief Executive Officer Oswald J. Grübel said that banks generally had seen lower profits of late, due to deleveraging and increasing capital requirements.
Grübel added that UBS was adapting to the weaker economic environment and enhancing the efficiency of its business, and said that the bank’s capital strength and competitive positioning gave it cause for optimism about the future.