UBS UBS Group AG

ZURICH—UBS Group AG said Friday that its second-quarter net profit fell to 1.03 billion Swiss francs ($1.05 billion), from 1.21 billion francs in the same period last year, as the world's biggest wealth manager continues to contend with turbulent markets.

Analysts had expected net profit of 636 million francs.

Zurich-based UBS said operating income fell to 7.4 billion francs in the quarter, from 7.8 billion francs in the same period last year.

UBS, like its European peers, has been grappling with low and negative interest rates, which crimp the Swiss bank's profitability. It has also recently seen many of its wealth management clients avoid choppy markets by letting their assets remain dormant—another curb on profit.

UBS said pretax operating profit at its wealth management unit fell 31% compared with the same period last year, to 518 million francs. Pretax operating profit at UBS's investment bank fell 48% to 284 million francs.

Write to John Letzing at john.letzing@wsj.com

(END) Dow Jones Newswires

July 29, 2016 01:45 ET (05:45 GMT)

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