UBS Wealth Management Americas reported $211 million in pre-tax profit for the second quarter on Tuesday, up 28% from the same quarter last year, as the division continued to grow its financial advisor headcount.
Pre-tax profit rose from $209 million in the first quarter of this year and from $165 million in the second quarter of 2011. Those results came as revenue climbed to $1.59 billion, up 1% from $1.57 billion last quarter and a 5% rise from $1.51 billion in the same quarter one year ago.
Those "record revenues" came with more managed account fees on increased invested assets and gains in sales from the division's portfolio, UBS Group Chief Financial Officer Tom Naratil said during the firm's earnings presentation on Tuesday.
The U.S. wealth management division's advisor headcount totals 7,021, the firm said Tuesday, up 6 from 7,015 in the first quarter and an increase of 159 from 6,862 in the second quarter of last year.
Revenue per advisor also increased to $905,000, marking a 1% increase from $897,000 in the first quarter and a 3% climb from $882,000 in the same three months last year.
Invested assets fell to $797 billion from $807 billion in the first quarter, which the firm attributed to declines in market performance. At the same time, invested assets were up from $774 billion in the second quarter of 2011.
Invested assets per advisor fell to $114 million, down from $115 million in the first quarter, while up from $113 million in the second quarter of 2011.
"Once again, we reported the highest invested assets per advisor in our peer group," Naratil said. "We're pleased with FA productivity, which continues to be strong."
Net new money fell to $3.8 billion, a 17% decline from $4.6 billion in the first quarter, which the firm attributed to annual client tax payments, while rising 27% from $3 billion in the second quarter of last year.
UBS's U.S. wealth management results come as its investment banking division posted a pre-tax loss of 130 million Swiss francs for the quarter, tied to a loss of 349 million Swiss francs resulting from the Facebook initial public offering in May.
Overall, UBS posted pre tax profit of 951 million Swiss francs for the quarter, down from 1.3 billion francs from the previous quarter, which the firm attributed to lower net fee and commission income and increased operations costs. Net profit attributable to shareholders was 425 million Swiss francs for the quarter, down from 827 million Swiss francs in the first quarter.
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