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UBS has published its first results since the acquisition of Credit Suisse.
Fabrice Cofrini | AFP | Getty Images
UBS reported net income of $1.03 billion for the first quarter, down 52% year-over-year as part of a legacy litigation. These are the first results of the Swiss bank since the announcement of the takeover of its rival Credit Suisse.
Analysts had estimated it would post net income of $1.75 billion for the quarter, according to Refinitiv.
The Swiss bank increased its provisions by $665 million following a dispute over residential mortgage-backed securities in the United States.
“Our strong underlying performance and strong inflows this quarter demonstrate that we continue to be a source of stability for our clients during times of significant uncertainty,” CEO Sergio Ermotti said in a statement.
Here are some other highlights from the quarter:
- Revenue hit $8.75 billion from $9.38 billion a year ago
- Operating expenses were $7.2 billion, compared to $6.6 billion a year ago
- The CET 1 capital ratio, a measure of bank solvency, stood at 13.9% compared to 14.1% a year ago
The lender also said it attracted $28 billion in net new funds to its global wealth management unit, of which $7 billion was recorded in the last 10 days of March and thus after news of its acquisition of Swiss credit.
Shares of UBS have jumped more than 10% since announcing the takeover of its struggling Swiss competitor last month. At the time, UBS said the dealnegotiated by Swiss regulators, would create a “leading global wealth manager” with more than $5 billion in total invested assets.
However, Barclays analysts said the market “significantly underestimates” the complexity of integrating Credit Suisse into UBS, Reuters reported.
Following the deal, UBS announced that Sergio Ermotti, who served as CEO between 2011 and 2020, would return to the role from April 5.
This is breaking news and will be updated shortly.