UBS’s second-quarter profit more than doubled to $2.4 billion, beating estimates. CEO Sergio Ermotti criticized Swiss government proposals to increase capital reserves by $24 billion, which could impact shareholder rewards. UBS is contemplating contingency plans, including potentially moving its headquarters, but remains focused on staying in Switzerland while maintaining global ambitions.

UBS is not willing to front-run any new capital regulations, emphasizing that proposed increases could not easily be absorbed. The Swiss government is concerned about potential crises due to UBS’s size. Analysts see UBS’s results as a testament to its business model and integration of Credit Suisse.

Revenues for UBS’s global markets surged 25%, surpassing expectations. The bank remains positive about its outlook, citing strong investor and company readiness to deploy capital amid improving global economic confidence. Trading and transactional activity are expected to normalize in the upcoming quarter.

UBS attributed some earnings beat to a $427 million provision release related to Credit Suisse litigation and a $209 million net income tax benefit. Integration of Credit Suisse is progressing well. Market volatility led to FX losses for some UBS clients, prompting talks of compensation for those affected.

CEO Ermotti disclosed that fewer than 200 clients suffered losses from complex foreign-exchange derivatives, with some advisors not following guidelines. UBS has set aside funds for compensation, but the cost is deemed immaterial.

Read more at Yahoo Finance: UBS profit beats expectations as CEO Ermotti holds stance on capital