UBS and Credit Suisse reported financial figures today, both broadly showing stronger results in terms of earnings and asset inflows.

Switzerland's two largest banks and wealth management houses, UBS and Credit Suisse reported second-quarter and first-half results today, with both firms showing broadly stronger results for the quarter and half-year periods.

UBS said that it made an adjusted pre-tax profit on its wealth management business (not including the Americas) of SFr691 million ($714 million) in the three months to the end of June, against SFr606 million a year earlier. In its wealth management business in the Americas, the Zurich-listed lender logged a pre-tax profit, adjusted, of SFr322 million in Q2, from SFr275 million.

Across the whole of UBS's business operations, pre-tax profit, adjusted for the second quarter was SFr1.675 billion, vs SFr1.672 billion a year earlier. Net profit growth in the quarter was 13.5 per cent.

Total invested assets at the end of June were SFr2.922 trillion, against SFr2.821 trillion at the end of 2016.

"Global wealth management delivered 15 per cent adjusted profit before tax growth year over year, on increased client activity, US dollar interest rate rises, higher invested asset levels, further progress on mandate penetration and loan growth," UBS said in its statement.

Across all wealth management regions, including the Americas, there was SFr1.4 billion of net new money in the three months to the end of June. While there were net inflows in most regions, the Americas saw a net outflow of $6.4 billion, including $3.3 billion linked to season income tax payments and lower recruiting in the quarter.

"Considering market conditions, the second quarter results were very good and contributed to a strong first half of the year. Our global wealth management business in particular delivered an excellent performance. The results once again demonstrate the value of our diversified business model, allowing us to grow profitably and sustainably over the cycle and in a variety of market conditions," Sergio Ermotto, group chief executive, said.

UBS said its capital position remains "strong", with a fully applied CET1 capital ratio - a widely-used yardstick of banks' capital strength - of 13.5 per cent.

Credit Suisse
Across all divisions, Switzerland's second-largest bank said it made adjusted pre-tax income of SFr1.6 billion in the first half of 2017, up sharply from SFr117 million; and made SFr684 million in the second quarter of 2017.

Credit Suisse said it is on track to achieve cost target of less than SFr18.5 billion for this year.

Across the entire group, assets under management stood at SFr1.307 trillion, against SFr1.217 trillion at the end of December 2016.

The lender said that at its Swiss Universal Bank division, it delivered adjusted pre-tax income of SFr987 million in the first half of 2017, up 6 per cent from a year earlier. In the second quarter, it logged record adjusted pre-tax income of SFr504 million.

In line with targeted revenue initiatives across the division, second-quarter net revenues rose by 5 per cent on a year earlier. Adjusted total operating expenses in the second quarter continued to fall from a year earlier. The SUB ended the second quarter with record assets under management of SFr554 billion. The private clients arm of this division attracted net new assets of SFr3.7 billion in H1 2017, a significant improvement over the SFr1 billion recorded in the first half of last year. Gains reflected robust inflows from ultra-high net worth and entrepreneur clients.

Within the international wealth management sector, the bank said it experienced a "step change" in adjusted pre-tax income. In the first six months of this year, adjusted pre-tax income rose 24 per cent year-on-year to SFr705 million; 2Q17 adjusted pre-tax income of 378 million surged 45 per cent compared to 2Q16. IWM gathered net new assets of SFr27 billion in the first half of 2017, almost double the figure from a year earlier. Within the international wealth arm, private banking net assets totaled SFr9.3 billion, an annualised growth rate of 6 per cent, Credit Suisse said.

Asia
Turning to its Asia business, Credit Suisse said its Wealth Management & Connected business (WM&C) arm delivered a 33 per cent rise in net revenues to SFr1.148 billion and 72 per cent growth in adjusted pre-tax income to a record SFr403 million in the first half of 2017.
Within WM&C, net revenues for private banking in the first half of the year rose by 24 per cent on a year earlier. Net new assets in H1 2017 totaled SFr10 billion and assets under management reached a record level of SFr178 billion.