Despite positive results, UBS is continuing with its plans to merge with Credit Suisse.
Global Wealth Management unit saw revenue rise by 28% to $6.14 billion and net new assets reach $27.4 billion.
UBS CEO Sergio Ermotti expressed satisfaction with the progress made in integration plans and return to profitability.
UBS reported a net income of $1.8 billion in Q1 2024, surpassing consensus forecasts.
UBS reported a return to profitability in the first quarter of 2024 following two consecutive losses, with net income coming in at $1.8 billion, surpassing consensus forecasts. The Swiss banking giant's Global Wealth Management unit saw revenue rise by 28% to $6.14 billion and net new assets reach $27.4 billion.
Despite the positive results, UBS is continuing with its plans to merge with Credit Suisse, aiming to complete the merger of their US holding companies in Q2 2024 and their Swiss entities in Q3 2024. The bank's CET1 capital ratio stood at 14.8%, up from the previous quarter's 14.4%. UBS CEO Sergio Ermotti expressed satisfaction with the progress made in integration plans and return to profitability.
Investors were pleased with the strong revenue growth, particularly in light of initial concerns that the Credit Suisse merger would lead to revenue attrition. The bank is now expected to focus on balance sheet management and accelerating the wind-down of Credit Suisse's legacy trading positions to release substantial capital.
Meanwhile, other companies in the sector are also reporting earnings this week. Saudi Aramco may have seen a decrease in profit due to OPEC production cuts, while BP's adjusted net income is predicted to remain flat. Infineon Technologies AG might fall short of consensus revenue forecasts and could cut its 2024 outlook. AB InBev is performing well in the Middle and South America regions but faces challenges in Asia Pacific, while BMW's automotive margin shrank due to lackluster volumes and intense price competition in China.
Safaricom is expected to benefit from strong growth in M-Pesa income and mobile data revenue by the Ethiopian unit. IAG will lean on premium leisure demand to bolster revenue and offset a slower rebound on the corporate side.
