Switzerland's largest bank UBS on Monday posted a 53 percent rise in second quarter profits, in its first results since agreeing to plead guilty to fraud as part of the Libor manipulation case. The bank brought in profits of 1.2 billion Swiss francs ($1.25 billion, 1.1 billion euros), with strong performances from its wealth management, corporate and investments units.
The bank said it had showed "resilience" in the face of economic uncertainty and rising costs caused by a strong Swiss franc, among other headwinds. "I am pleased with the quarter. We maintained our momentum despite ongoing market challenges," chief executive Sergio Ermotti said in a statement. But the upbeat results failed to impress investors as shares of UBS lost 1.62 percent to close at 86.45 Swiss francs on the Zurich stock exchange. The US department of Justice in May dropped charges against UBS as part of a probe into currency rigging, granting it conditional immunity for co-operating with authorities.
But as part of its deal with US officials, a 2012 non-prosecution agreement in connection with Libor interest rate manipulation was revoked. UBS agreed to plead guilty to one count of wire fraud in the Libor affair, pay $203 million in fines and accept a three-year probation. Both UBS and analysts had predicted that the fines would not have a meaningful impact on second quarter results.
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