UBS on Tuesday reported a swing again to revenue after two quarterly losses because it smashed first-quarter expectations, with outcomes bolstered by increased wealth administration revenues.
Shares had been 8.9% increased at 8:48 a.m. London time, returning a few of April’s losses. UBS shares soared 51.7% final yr however have had a extra lackluster begin to 2024.
Decrease bills and consolidation advantages following the takeover of Credit score Suisse in June 2023 additionally helped the financial institution put up a web revenue of $1.8 billion within the first quarter, forward of a consensus forecast in an LSEG ballot of $721.4 million.
The Swiss banking big is continuous to course of the mammoth integration of its former rival. The agency mentioned Tuesday that it expects to finish the merger of UBS AG and Credit score Suisse AG right into a single U.S. intermediate holding firm within the second quarter, and the merger of its Swiss entities within the third quarter.
Group income within the first quarter totaled $12.74 billion, additionally increased than anticipated and up from $10.86 billion within the fourth quarter of 2023. Income in its flagship International Wealth Administration unit rose 28% to $6.14 billion.
The financial institution’s CET1 capital ratio, a measure of liquidity, was 14.8%, in comparison with 14.4% the earlier quarter.
“We’re very happy as a result of we’re making excellent progress in our integration plans,” UBS CEO Sergio Ermotti advised CNBC’s Silvia Amaro on Tuesday.
The financial institution in the meantime returned to sturdy reported web profitability and underlying profitability whereas strengthening its capital, Ermotti mentioned, including that there was “nonetheless work to be completed for the remainder of the yr.”
