UBS equities trading boosts Q4 revenues

The Swiss bank recorded a 22% increase in revenues from equities trading. 

UBS fourth quarter earnings revealed its investment bank recorded an increase of 54% in revenues, largely driven by an improved performance in equities trading.

The Swiss bank, which is the first European bank to release its fourth quarter earnings, recorded a profit before tax of CHF 344 million, and operating income of CHF 1.94 billion.

This included a 22% increase in equities revenue to CHF 891 million in comparison to the fourth quarter of last year. UBS cited that revenues in cash equities improved growth within its Americas business.

“Steps taken over the last few years to invest in our US business, proactive actions on costs and balance sheet management helped us deliver a 20% return on attributed equity for 2016,” said Kirk Garnder, group chief financial officer, UBS.

Revenues from equities trading offset a 12% decrease in its FX, rates and credits business to CHF 394 million , in which the bank “did not benefit from heightened volatility and volumes from the US election”, the bank said in its earnings release.

It also saw an 11% increase in financing services revenues to CHF 397 million, driven by higher prime brokerage revenues.