The interest rate environment is dampening the business model which relies on “net interest income” , as can clearly be seen above (marked red). Luckily for banks in general and UBS in particular, loyal customers aren’t putting stronger pressure on fees and commissions.
Own fund business schrinking and lighter customer activity are lowering commissions slight as can be seen in “net fee and commission income”.
A noteworthy positive is the “net trading income” especially as the impact from own credit, that had inflated the result last year QoQ.
Looking at the business divisions UBS has the investement bank and the americas wealth management that are not as profitable or safe as the personal & corporate banking or wealth management units. Also the investment is made to look better by transferring costs out to corporate center. It is inherently riskier and disguised. Asset management is also not especially profitable.