GENEVA — UBS Group, the Swiss major banking company, reported a 96 per cent dive in second-quarter net profit, dropping to US$1.14 billion from US$27.33 billion the previous year, reported German news agency dpa.

Despite the significant profit decrease, the Swiss banking giant saw an increase in revenues.

Earnings per share were US$0.34, down from last year’s US$8.51. The prior year’s result included negative goodwill of US$27.26 billion.

Profit before tax was US$1.47 billion, down 95 per cent from last year’s US$27.70 billion. Underlying profit before tax was US$2.06 billion, compared to US$891 million a year earlier, reflecting client franchise strength and disciplined execution of its strategy and integration plans. 

Total revenues climbed 25 per cent to US$11.90 billion from US$9.54 billion last year, largely driven by the consolidation of Credit Suisse revenues. Underlying revenues were US$11.1 billion, compared to US$9.16 billion last year. 

Net interest income, meanwhile, declined 10 per cent from the prior year to US$1.54 billion.

Looking ahead, the company said it sees positive investor sentiment and continued momentum in client and transactional activity in the third quarter. The company expects to incur in the third quarter of 2024 around US$1.1 billion of integration-related expenses.

Sergio Ermotti, Group, the chief executive, said, “We are well positioned to meet our financial targets and return to the levels of profitability we delivered before being asked to step in and stabilise Credit Suisse. We are now entering the next phase of our integration, which will be critical to realise further substantial cost, capital, funding, and tax benefits.” — BERNAMA-dpa