UBS Investment Bank Reports Full Year 2018 Financial Results, 5% Uptick in Operating Income YoY

Karthik Subramanian

Karthik Subramanian has been a professional trader and fund manager over the last 18 years. He is basically a software developer who made the transition to financial domain around 18 years back as the attractiveness of the financial markets proved too much for him. He lives in Chennai in India along with his wife and son. He began his career as a software developer in 1999 and then gradually moved into the financial industry as he began trading stocks in his pastime. He then moved into the financial markets full time and then shifted his focus to the FX markets due to the liquid nature of these markets. Since then, he has been trading FX diligently and his favourite pair are the EURUSD and EURJPY. Over the last couple of years, he has found blockchain to be of high interest and considering his background in software and finance, he has since assembled a team of highly talented developers who have since worked on a variety of projects like crypto exchanges and blockchain architecturing. Now, he balances his time between trading and commenting on both the FX and crypto markets. He has worked with many publications including FX Street and Finance Magnates, which has helped him gain experience and also recognition across the industry. He loves to write and this passion has helped him to reach out across the FX and crypto industry. Right now, he works on his pet projects in the FX and crypto industry and spends his time writing and managing his blockchain team and helping it to reach higher.

UBS Investment Bank Reports Full Year 2018 Financial Results, 5% Uptick in Operating Income YoY

March 15, 2019

ubsInvestment Bank, UBS has reported full-year financial report for the year 2018, registering a marginal increase in operating profits. Taking a look at the numbers, the Swiss banking major has reported a net operating income of $30.2 billion, which is around 2 per cent higher compared to previous year, which was at $29.6 billion.

The operating expense during the term fell on a year-on-year comparison. However, the decline was marginal. In 2018, total operating expenses came in at $24.2 billion, which is 0.2 per cent lower from $24.3 billion in 2017.

The bank’s investment banking unit was the best performing segment during the year, which drove solid performances in both the second and third quarter, beating the market expectation. The investment banking unit generated a total operating income of $8.15 billion, which is 5 per cent higher compared against 2017, which was at $7.79 billion. The segment also managed to lower its operating expenses by slight 40 basis points from $6.53 billion in 2017 to $6.5 billion in 2018. 

In the Investor Client Services segment, foreign exchange, rates, and credits generated an income of $1.63 billion, which is 16 per cent higher when compared with the previous year. Equities were also higher during the period, climbing from $3.6 billion in 2017 to $3.9 billion in 2018, which is 9 per cent higher year-on-year. 

The net profits attributable to shareholders came in at $4.5 billion in 2018, as against $969 million in 2017, which is almost 366 per cent higher. Diluted earning per share is $1.16 during the year.

The overall positive result was subdued as the bank has been fined with a penalty of HKD 375 million ($47.8 million) by the Securities and Futures Commission, Hong Kong, as its local subsidiaries failed to discharge their obligations in relation to IPOs of three companies.

The bank is also fighting litigation in a French court, where it has been slapped a penalty of 4.5 billion euro ($5.09 billion) last month on account of tax fraud. The court has found evidence that the firm has helped French citizens to evade tax, totalling billions of euros, from a period between 2004 to 2012.

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