Switzerland’s largest bank UBS posts 58 per cent second-quarter net profit drop

GENEVA – Swiss banking giant UBS AG has posted second-quarter net profits of 425 million francs ($434.16 million), a sharp plunge from the 1.02 billion Swiss francs ($1.2 billion) it posted in the comparable period a year ago.

Switzerland’s largest bank says the 58 per cent net profit drop reflects “challenging conditions marked by increased volatility and greater client caution,” but it said the bank surpassed requirements to increase its capital cushion and prudently cut costs that should lead to better results by the end of 2013.

The bank says it remains confident of its ability to attract investment money from clients.

Chief Executive Sergio P. Ermotti told investors in a statement Tuesday that going forward UBS will continue to focus on “prudent liquidity management, further reducing risk-weighted assets and delivering the best possible service to our clients.”