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UBS: the best and worst of both worlds

It looks like the Swiss bank’s capital-lite model and low-fat fixed income diet is working. Or is it?

It’s been a strange summer. We’ve had better weather than the south of France, we’re thrashing Australia at cricket, and UBS is officially the most profitable investment bank on the street.

Improbable though it may seem, you did not misread that. In the first six months of this year, the new-look investment bank at UBS has generated a pre-tax return on equity of 43% (up from just 7% last year).

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