The UBS logo is seen within the office constructing in Krakow, Poland on February 22, 2024.
Jakub Porzycki | Photo only | Getty Images
UBS reported a return to profitability on Tuesday after two quarterly losses, exceeding expectations for the primary quarter. The results were supported by higher income from asset management.
Lower costs and consolidation advantages following its June 2023 acquisition of Credit Suisse also helped the bank post first-quarter net income of $1.8 billion, above the LSEG survey’s consensus forecast of $721.4 million -Dollar lies.
The Swiss banking giant continues to work on the mammoth integration of its former competitor. The company said Tuesday that it expects to finish the merger of UBS AG and Credit Suisse AG right into a single U.S. intermediate holding company within the second quarter and the merger of its Swiss units within the third quarter.
Group revenue totaled $12.74 billion in the primary quarter, also ahead of expectations and up from $10.86 billion within the fourth quarter of 2023. Revenue at its flagship Global Wealth Management unit rose 28% to $6.14 billion.
The bank’s CET1 capital ratio, a measure of liquidity, was 14.8%, in comparison with 14.4% within the previous quarter.
“This quarter marks a return to reported net profits and further capital appreciation, a testament to the strength of our business and customer relationships, as well as our ability to make significant progress on our integration plans while actively optimizing our financial resources,” said Group CEO Sergio Ermotti in a press release.
UBS shares rose 51.7% last 12 months but have had a weaker begin to 2024, falling 4.6% thus far.
