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UBS Wealth Merger Hits Goals as Investors Press for Returns

  • Investment bank beats analyst expectations for second quarter
  • Bank had net outflows for the first time in about 18 months
Bloomberg business news
Ermotti discusses UBS’s investment banking performance and net new money outflows in its wealth management unit.(Source: Bloomberg)
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UBS Group AG’s newly combined wealth-management business and investment bank are helping Chief Executive Officer Sergio Ermotti boost growth after investors questioned the lender’s commitment to higher returns.

The private banking unit -- which counts many of the world’s billionaires among its clients -- took in more fees and interest income in the second quarter while bringing down costs, even as UBS unexpectedly saw money leave the firm. At the investment bank, surging equities and foreign-exchange trading helped the unit led by Andrea Orcel beat estimates.