UBS equities income tanks by 22%

Equities trading income dropped by 22% in the second quarter of 2016, but the bank's profits surprised analysts on the upside.

Income from UBS’s equities trading operations dropped by 22% in the second quarter of 2016, compared to the same period in 2015.

Total income for the equities division dropped from CHF 1.13 billion for the second quarter of 2015 to CHF 878 million for the same quarter this year.

The decline in revenue was partially offset by a negligible uplift in income in the bank’s Foreign Exchange, Rates and Credit business, which showed an uplift of CHF 48 million for the quarter to CHF 461 million.

It comes as the bank surprised analysts with a better-than-anticipated set of results for the group as a whole with profits of CHF 1.03 billion after tax compared to CHF 1.21 billion for the previous year.

The Suisse bank confirmed it had made 454 job cuts in the three month period, which drove a slight decrease in expenses.

Financing Services revenues decreased from CHF 463 million to CHF 424 million when the three month period was compared to Q2 2015.

UBS claimed the decrease was driven by lower equity finance revenues and a decrease in client activity.

Sergio Ermotti, Group CEO of UBS, said: “UBS remains in a solid position with strong capital, strategic clarity and a well-diversified business model”