UBS Group AG’s newly combined wealth-management business and investment bank are helping Chief Executive Officer Sergio Ermotti boost growth after investors questioned the lender’s commitment to higher returns.
The private banking unit—which counts many of the world’s billionaires among its clients—took in more fees and interest income in the second quarter while bringing down costs, even as UBS unexpectedly saw money leave the firm. At the investment bank, surging equities and foreign-exchange trading helped the unit led by Andrea Orcel beat estimates.
Ermotti said UBS has begun to cut costs in wealth management following the merger of the U.S. and international division into one super-unit that manages about $2.4 trillion. While the business is producing steady profits, the lender rejigged financial targets this year after investors argued Ermotti should do more to improve returns after the shares languished.
UBS shares rose the most since April after the results were released on Tuesday, gaining as much as 4.2 percent in Zurich.
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