UBS posts $1.1 bln net profit in Q2, easily beating forecast

STORY: Swiss banking giant UBS posted a second-quarter net profit that comfortably beat forecasts, as it announced a new stage in the integration of its one-time rival Credit Suisse.

It reported on Wednesday a net profit attributable to shareholders of $1.14 billion.

Its more then double the $528 million forecast by analysts in a company-provided poll for the period from April to June.

These are the bank's first results since completing its formal legal merger with Credit Suisse in May.

UBS acquired its longtime competitor last year in a rescue that was engineered by Swiss authorities when Credit Suisse collapsed after a string of financial setbacks and scandals.

In a statement, UBS CEO Sergio Ermotti said the first half's gains reflected the 'significant progress' the bank had made since closing the acquisition.

Saying UBS was now

"...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."

Ermotti also said that the bank was now entering the a critical "next phase" of the integration.

After booking a massive Q2 profit last year amidst the buyout, UBS had posted two straight quarters of losses from the cost of absorbing its rival.

Investors warmed to the takeover, by this summer pushing up the value of UBS's shares by more than two-thirds since it bought Credit Suisse in March 2023.

Though recent turmoil in global markets pared back some of those gains.

Analysts are watching UBS's absorption of Credit Suisse closely, and Ermotti said in May any delay to the technological integration of the two banks could erode planned cost savings.

Markets are also watching how Swiss authorities move forward with plans to tighten banking regulation as they seek to ensure there is no repeat of the Credit Suisse meltdown.