By Cristina Roca

 

Shares in UBS Group AG traded sharply lower on Tuesday after the Swiss bank's second-quarter earnings fell short of analysts' expectations as global markets dropped and investors turned more cautious.

The Swiss bank said quarterly net profit rose 5% on year to $2.11 billion, while revenue was $8.92 billion, inching up from $8.90 billion.

Analysts had expected UBS to post a net profit at $2.40 billion on revenue of $9.43 billion, according to a company-compiled consensus.

At 0749 GMT, shares in UBS traded 6% lower at CHF15.19.

"The second quarter was one of the most challenging periods for investors in the last 10 years," Chief Executive Ralph Hamers said. The bank cited high inflation, the war in Ukraine and Covid-19 disruption in parts of Asia as some of the factors weighing on investors' minds, and warned that the operating environment remains uncertain heading into the second half of the year.

Tuesday's update disappointed on many fronts, RBC Capital Markets analyst Anke Reingen said in a research note. One such area was assets-under-management levels, which weakened amid more muted client activity, the Canadian bank said.

 

Write to Cristina Roca at cristina.roca@wsj.com

 

(END) Dow Jones Newswires

July 26, 2022 04:32 ET (08:32 GMT)

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