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UBS 1H profit climbs 13%
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August 24, 1999: 3:35 a.m. ET
Swiss group benefits from buoyant corporate business to meet expectations
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LONDON (CNNfn) - Zurich-based bank giant UBS unveiled a 13 percent climb in first-half profits Tuesday as strong trading income boosted the performance of the Europe's second-largest bank.
Net earnings climbed to 3.962 billion Swiss francs ($2.64 billion) from 3.511 billion a year earlier, including extraordinary gains of 1.06 billion francs from asset sales.
The result was at the lower end of expectations which ranged from 3.8 billion to 4.4 billion francs. Revenue rose 5 percent to 15.24 billion francs while costs advanced just 1 percent despite provisions for Y2K preparations.
Earnings from operations climbed 14 percent to 5.24 billion francs.
It was the bank's first interim earnings following UBS' creation last year from the merger of United Bank of Switzerland and Swiss Bank Corp. to form the world's second-largest bank by assets behind Germany's Deutsche Bank (FDBK).
The restructuring has seen UBS' assets slip during the first half to $603 billion, giving up the global second spot to Citigroup (C).
UBS benefited from a 26 percent jump in its proprietary trading profit to 3.98 billion francs though the year-ago figure was depressed by losses from its emerging-market operation.
Healthy growth in corporate and related capital market activity boosted the pretax profits of Warburg Dillon Read, its investment banking arm, to 1.54 billion francs, a 13 percent rise when extraordinary items are excluded.
UBS shares opened 7.50 francs lower at 438 in early trading in Zurich Tuesday. 
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UBS
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