The UBS logo in an office building in Krakow, Poland on February 22, 2024.
Jakub Purzycki | norphoto | Getty Images
UBS on Tuesday reported a return to profitability after two quarterly losses as it smashed first-quarter expectations, with results boosted by higher wealth management revenue.
Shares were up 8.9% at 8:48 a.m. London time, recouping some of April's losses. UBS shares rose 51.7% last year, but it's been a lackluster start to 2024.
Lower expenses and consolidation benefits following the Credit Suisse acquisition in June 2023 also helped the bank achieve a net profit of $1.8 billion in the first quarter, ahead of the consensus forecast in an LSEG survey of $721.4 million.
The Swiss banking giant is continuing the massive integration of its former rival. The company said on Tuesday that it expects to complete the merger of UBS AG and Credit Suisse AG into a single U.S. intermediate holding company in the second quarter, and the merger of its Swiss entities in the third quarter.
Total group revenue in the first quarter was $12.74 billion, also higher than expected and up from $10.86 billion in the fourth quarter of 2023. Revenue at the leading global wealth management unit rose 28% to $6.14 billion.
The bank's CET1 capital ratio, a measure of liquidity, was 14.8%, compared to 14.4% in the previous quarter.
Group CEO Sergio Ermotti said: “This quarter represents a return to reported net profits and an additional capital increase, which is evidence of the strength of our business, our customer franchises and our ability to achieve significant progress on our integration plans while effectively improving our finances.” In the current situation.
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