UBS reported a net profit of $2.8 billion for the second quarter, aligning with analyst expectations, while pre-tax profits surged 64% year-on-year to $3.6 billion. CEO Sergio Ermotti noted strong business momentum, particularly in investment banking and capital markets, and highlighted a robust IPO market, including UBS's involvement in SpaceX's debut.
The bank announced a $3 billion share buyback plan, initiating with $1 billion in the next three months, which contributed to a 2.5% rise in UBS shares. Despite the positive outlook, Ermotti warned that geopolitical tensions could pose temporary challenges and acknowledged the likelihood of a correction in AI stocks, advising clients to diversify their investments.
He emphasized that AI will continue to be a significant market factor, presenting opportunities for clients to invest strategically