Swiss bank UBS has managed to close the first quarter of the year with an attributable net profit of 1,755 million dollars (1,629 million euros), which means an improvement of 70.5% compared to the profits recorded a year ago. It is the first positive result of the entity after two consecutive quarters in ‘red numbers’.
UBS’s turnover between January and March reached 12,739 million dollars (11,827 million euros)45.7% more than in the first quarter of 2023, while credit losses totaled 106 million dollars (98 million euros), compared to 38 million dollars (35 million euros) in the same period of 2023.
The Net interest income of the Swiss entity amounted to 1.94 billion dollars (1,801 million euros), 40% more, while commission income increased 41%, up to 6,492 million dollars (6,027 million euros) and income through financial instruments grew 56%, up to 4.. 182 million dollars (3,882 million euros).
UBS financial profitability
Financial profitability (RoE) stood at 8.2%compared to -1.3% in the fourth quarter and 7.2% a year earlier, while return on tangible equity (RoTE) rose to 9% from -1.4% in the previous three months and 8.1% in the first quarter of last year.
For its part, the CET1 core capital ratio closed the first quarter of 2024 at 14.8%, above the 14.4% at the end of 2023 and 13.9% in the first quarter of 2023. “Just over a year ago, we were asked to play a critical role in stabilizing the Swiss and global financial systems through the acquisition of Credit Suisse and we are delivering on our commitments,” said Sergio Ermotti, CEO of UBS. “This quarter marks a return to reported net profits and further capital accumulation, a testament to the strength of our business,” he added.
Merger with Credit Suisse
On the other hand, UBS has reported that in the first quarter of 2024 it achieved additional cost savings of around $1 billion (€928 million), for a total of around 5,000 million dollars (4,642 million euros) andn gross cost savings compared to fiscal 2022 combined, with the goal of achieving another $1.5 billion (€1.393 million) in gross cost savings by the end of 2024.
On the other hand, the bank expects to complete the merger of UBS AG and Credit Suisse AG on May 31, with the expectation of closing the merger of Credit Suisse (Schweiz) AG and UBS Switzerland AG in the third quarter of 2024.. These critical milestones will facilitate the migration of clients to UBS platforms starting at the end of this year and will unlock the next phase of cost savings and tax benefits, of capital and financing starting in the second half of 2024, and for the end of 2025 and until 2026, he added.
