Tag Archives: Q2 2014

UBS reported 15% profit growth in Q2 2014

UBSUBS reported 15% profit growth in Q2 2014 amid lower costs. The net profit the lender rose to 792 million Swiss CHF (876 million USD) compared to 690 million CHF an year earlier, said the Zurich-based institution. For comparison the analysts predicted a slight increase to 719.3 million CHF.
The CEO of UBS Sergio Ermotti made ​​a big cost reductions in the amount of 2.1 billion CHF after the bank was facing increased pressure due to the decline in revenues and higher costs of litigation. The Bank aims to promote the return on equity to more than 15 percent by 2016 from 7.6% in the first half of this year. The cost of UBS fell by 6.9% to 5.9 billion CHF during the quarter, which helped their level reaches 82.8% of revenue compared to 86.2% an year earlier.
Earlier this year, the bank paid 300 million EUR (403 million USD) to the authorities in the German city of Bochum to settle the dispute whether help their clients to evade taxes. The lender set aside 120 million CHF for settling disputes during the quarter, bringing the total cost of legal provisions for the period amounted to 254 million CHF.

Profit of Deutsche Bank dropped in Q2 2014

Deutsche BankDeutsche Bank AG announced profit decrease by 29% yoy in Q2 2014, caused by lower non-interest profits and higher taxation. The net profit of the lender in the three months to the end of June fell to 237 million EUR compared to 334 million EUR for the same period last year. Remained below the level expected by experts polled by Bloomberg for a profit of 470 million EUR. The global investment banks try to cut costs in order to push up profits amid tighter regulations and record-low interest rates of central banks tightened in recent years, proceeds from loans and trading bonds.
“Nobody expects a good performance against the very difficult revenue environment”, said before a statement Stephan Bongard, an analyst at Independent Research GmbH. “The company needs to show investors that the trend in trade debt will change in the coming quarters. Their patience is not infinite”, he added.