Swiss banking giant UBS Group AG (UBS) announced on Wednesday a staggering 96% drop in its second-quarter net profit attributable to shareholders, which plunged to $1.14 billion from $27.33 billion the previous year.
Earnings per share also saw a significant decrease, falling to $0.34 from $8.51 in the same period last year.
It is worth noting that last year's results were bolstered by negative goodwill amounting to $27.26 billion.
Moreover, the bank's profit before tax dropped by 95% to $1.47 billion, down from $27.70 billion a year ago. However, the underlying profit before tax saw a marked improvement, rising to $2.06 billion from $891 million previously, demonstrating the company's robust client franchise and effective strategic and integration executions.
Total revenues surged by 25% to $11.90 billion from $9.54 billion last year, driven primarily by the consolidation of Credit Suisse's revenues.
Underlying revenues also increased, reaching $11.1 billion compared to $9.16 billion the previous year. Conversely, net interest income fell by 10% year over year to $1.54 billion.
Looking forward, UBS expressed optimism, citing positive investor sentiment and sustained momentum in client and transactional activities expected in the third quarter.
The company projected it would incur around $1.1 billion in integration-related expenses in the third quarter of 2024.
Sergio Ermotti, Group CEO, commented, "We are well positioned to meet our financial targets and return to the levels of profitability we delivered before being asked to step in and stabilize Credit Suisse. We are now entering the next phase of our integration, which will be critical to realizing further substantial cost, capital, funding, and tax benefits."
