ubs closes the second quarter with adjusted pre-tax profit of 1.022 million Swiss francs, equal to approximately 829 million euros. The result, higher than analysts' estimates, was achieved despite 865 million Swiss francs (700 million euros) committed between legal disputes, provisions and write-down of financial assets.
The Swiss Bank has strengthened its position as the best capitalized institution within its peer group thanks to the increase of the Cet1 capital ratio to 11,2%, thus meeting the parameters of Basel III.
UBS also announced that it intends to repay a loan and exercise its call option in the fourth quarter on the stabilization fund (StabFund) of the Swiss National Bank (SNB), into which its toxic assets had flowed during the financial crisis in 2008. This could increase the equity ratio. In this way, it is estimated that the Cet1 ratio will further improve by 70-90 basis points.
