UBS Wealth Management Americas saw profits slip 3% year-over-year, due in part to financial advisor compensation, according to the firm's latest earnings report.

The Zurich-based firm said advisor compensation grew 8%, rising to $742 million from $690 million. Recruitment-related costs also rose 8%, reaching $184 million from $171 million.

Revenues overall grew 7% to $1.89 billion, from $1.78 billion, while pre-tax profits for the division fell to $238 million for the second quarter, from $245 million for the same period a year ago.

Meanwhile, revenue per financial advisor was up 6%, increasing to $1.068 million from $1.005 million. Advisor headcount grew by six from the previous quarter, for a total of 7,119.

The Americas division reported a net new money loss of $2.5 billion, which the company attributed to client withdrawals due to seasonal tax payments. Invested assets topped $1 trillion for the first time, up from $892 billion for the year-ago period.

Companywide, the Swiss firm reported that net profits grew 15%, increasing to 792 million Swiss francs for the second quarter from 690 million francs for the same period a year earlier.

Earnings-per-diluted share rose 17% to 0.21 francs.  Revenues slipped 3%, dropping to 7.1 billion francs from 7.3 billion francs. But a 7% drop in expenses offset the revenue losses. Expenses fell to 5.9 billion francs from 6.3 billion francs.

The company's global wealth management division, which excludes the Americas, said pre-tax profits were down 36%, falling to 355 million francs from 557 million francs. The unit's expense climbed 12% to 1.5 billion francs from 1.3 billion francs. Meanwhile revenues decreased 2%, slipping to 1.92 billion francs from 1.95 billion francs.

The division reported 10.7 billion francs in net new money, of which the Asia Pacific region contributed 8.9 billion francs. Europe – excluding Switzerland – had negative outflows of 0.6 billion francs.

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