UBS reports better-than-expected profits in first quarter
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UBS reported its first quarterly profit since acquiring Credit Suisse, as the Swiss lender begins to benefit from a bailout of its former rival.
The group on Tuesday reported net profit of $1.8 billion for the first three months of the year, up from a loss of $279 million in the previous quarter and nearly three times the $602 million expected by analysts. It has doubled.
The company's wealth management business performed strongly again in the quarter, gaining $27 billion in net new assets as clients withdrew assets from both companies and returned to their lenders. UBS And last year, Credit Suisse bought it to avoid the disruption of an acquisition.
The bank also cut costs by $5 billion last year and realized another $1 billion in cost savings during the quarter. UBS said it aims to cut costs by $13 billion by the end of 2026.
“This quarter marks a return to reporting net income and further capital gains. This reflects the strength of our business and customer franchise, as well as our integration plans while aggressively optimizing our financial resources. This is a testament to our ability to make significant progress,” said CEO Sergio Ermotti. .
UBS agreed to acquire Credit Suisse in March 2023, but the deal was not completed until June last year.
This marriage of events marks the first time two globally systemically important financial institutions have merged, creating an asset management behemoth.
But UBS executives have warned that the integration process will be arduous and lengthy and will take time to take hold. Ermotti previously said 2024 was a “pivotal year” for the acquisition, during which time most of the costs would be incurred.
Summarize this content to 100 words Unlock Editor's Digest for freeFT editor Roula Khalaf has chosen her favorite stories in this weekly newsletter.UBS reported its first quarterly profit since acquiring Credit Suisse, as the Swiss lender begins to benefit from a bailout of its former rival.The group on Tuesday reported net profit of $1.8 billion for the first three months of the year, up from a loss of $279 million in the previous quarter and nearly three times the $602 million expected by analysts. It has doubled.The company's wealth management business performed strongly again in the quarter, gaining $27 billion in net new assets as clients withdrew assets from both companies and returned to their lenders. UBS And last year, Credit Suisse bought it to avoid the disruption of an acquisition.The bank also cut costs by $5 billion last year and realized another $1 billion in cost savings during the quarter. UBS said it aims to cut costs by $13 billion by the end of 2026.“This quarter marks a return to reporting net income and further capital gains. This reflects the strength of our business and customer franchise, as well as our integration plans while aggressively optimizing our financial resources. This is a testament to our ability to make significant progress,” said CEO Sergio Ermotti. .UBS agreed to acquire Credit Suisse in March 2023, but the deal was not completed until June last year.This marriage of events marks the first time two globally systemically important financial institutions have merged, creating an asset management behemoth.But UBS executives have warned that the integration process will be arduous and lengthy and will take time to take hold. Ermotti previously said 2024 was a “pivotal year” for the acquisition, during which time most of the costs would be incurred.
https://www.ft.com/content/fdf2790e-fbac-4591-a0a7-1c60fc0776f0 UBS reports better-than-expected profits in first quarter
