Wealth manager UBS unveiled strong second-quarter profits but warned investors that tougher conditions were ahead in the second half as markets weaken.
UBS today said its second-quarter net profit jumped 47 per cent from one year ago to 3.147 billion Swiss francs ($2.54 billion), well ahead of analysts' forecasts.
The bank said net new money flowing into its wealth management business in the second quarter came to 31.2 billion francs, down from a record 33.6 billion in the first quarter but above most analysts' expectations.
UBS said it expected 2006 to be "another year of strong results" and that it had a strong pipeline of deals for its investment bank.
But it anticipated a return to a more normal seasonal pattern for financial firms "where a strong start to the year is followed by softening performance in the second half."
UBS is Europe's second-largest bank and is the world's sixth largest bank with a market capitalisation of $111.3 billion. The Swiss bank has made a string of acquisitions to strengthen its wealth management franchise this year.