Investment bank UBS increased its expenditure on the outsourcing of IT and other services by 20 percent in the second quarter of this year.
The bank spent 260 million Swiss Francs (£158 million) in the quarter to the end of June, up from 216 million Swiss Francs (£131 million) in the quarter to the end of March.
This is in contrast to the first quarter of 2010, when the bank cut £158 million from its IT and consultancy costs, in order to produce its first quarterly profit for more than a year.
So far, UBS has spent seven percent more on IT outsourcing this year (£289 million) than it did in the first half of 2009 (£269 million).
The increased spend on IT was one reason why UBS’s total operating expenses increased to £246 million in Q2, compared with £234 million in the last quarter. Furthermore, despite the bank reporting a two percent growth in revenue in the second quarter, to £5.6 billion, it suffered a fall of £0.1 billion in operating profit, to £1.6 billion in Q2.
Despite the lower profit, UBS group CEO Oswald Grubel said: “This was a good result in volatile market conditions, and demonstrates the progress we are making as we move towards our mid-term targets.
“I remain confident in our future and I firmly believe that we have the right strategy in place.”
Meanwhile, although UBS spent more on rent and maintenance of IT and other equipment in Q2 2010 (£82 million) than in the first quarter (£80 million) this was still nine percent less than what it spent in the same period last year.
The bank’s spend on IT maintenance in the year to date has also fallen, from £188 million in the first six months of last year, to £162 million in 2010.
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