UBS posted a rise in second-quarter net profit on Tuesday, as it booked a 254 million Swiss franc ($280 million) charge to help settle claims concerning German tax evaders.
The Zurich-based bank reported quarterly net profit of 792 million Swiss francs ($875 million), compared to 690 million Swiss francs a year ago, when results included a $885 million settlement with the U.S. housing regulator over the mis-selling of mortgage-backed bonds. Tuesday's result beat expectations in an analyst poll conducted by Reuters, which averaged 774 million Swiss francs.
Sergio Ermotti, the group CEO at UBS, praised the results telling CNBC that they proved "our business model works in tough market conditions."
"They're a solid set of results across all businesses, in all regions," he said.
Shares in the bank rose at the session open but fell back to trade lower by 0.4 percent by 8:30 a.m. London time. Analysts at Citi said that overall the results were broadly in line with their expectations but noted that the bank had a cautious outlook for the quarter coming up with geopolitical risks and underlying challenges likely to remain.