RTTNews | Jul 21, 2020 01:13AM EDT

01:12 Tuesday, July 21, 2020 (RTTNews.com) - Swiss banking giant UBS Group AG (UBS) Tuesday reported that its second-quarter net profit attributable to shareholders fell 11 percent to $1.23 billion from last year's $1.39 billion. Earnings per share were $0.33, down 9 percent from $0.37 last year.

Profit before tax declined 10 percent to $1.58 billion from prior year's $1.76 billion. UBS's second quarter 2020 results included credit loss expenses or CLE totaling $272 million. Excluding CLE, profit before tax grew 5 percent.

UBS's strong second quarter 2020 results reflected operational resilience and active client engagement, as well as the benefits of a well-diversified business model and broad regional mix.

Operating income dropped to $7.40 billion from $7.53 billion a year ago. Operating income, including CLE, declined 2 percent. Income before CLE increased 2 percent.

Looking ahead, the company noted that, due to the continued uncertainty related to the pandemic, it is reasonable to expect elevated Group credit loss expenses in the second half of 2020, but below those seen in the first half of the year.

"While it is premature to provide guidance for 2020, going forward the intention is to continue to pay out excess capital and maintain the overall capital returns to shareholders consistent with previous levels. Depending on business development and the outlook in the second half, UBS may resume share repurchases in the fourth quarter," the company said.

Read the original article on RTTNews ( https://www.rttnews.com/3112572/ubs-q2-profit-down-sees-elevated-credit-loss-expenses-in-h2-may-to-resume-share-repurchase-in-q4.aspx)

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