UBS reported a net profit of $1.8 billion for the first quarter of the year, surpassing analyst expectations. The bank attributed its success to lower expenses following the takeover of Credit Suisse in June 2023. The net profit of $1.8 billion exceeded a consensus forecast in an LSEG poll of $721.4 million. Group revenue for the quarter totaled $12.74 billion, also higher than expected and up from $10.86 billion in the previous quarter. The bank’s CET1 capital ratio, a measure of liquidity, was reported at 14.8%, compared to 14.4% in the previous quarter.
Group CEO Sergio Ermotti expressed his satisfaction with the results, stating that the quarter marked the return to reported net profits and further capital accretion. He credited the strength of UBS’s business and client franchises, as well as the bank’s ability to make significant progress on integration plans while optimizing financial resources. UBS shares had seen a significant increase of 51.7% in the previous year, but the start of 2024 has been more lackluster, with shares dipping 4.6% so far. The bank’s performance in the first quarter of the year indicates a positive trajectory for the future.
The success of UBS in the first quarter of 2024 comes as a result of lower expenses due to the takeover of Credit Suisse, which helped the bank post a net profit that exceeded analyst expectations. The strong performance is reflected in the group revenue totaling $12.74 billion, which was also higher than anticipated. The CET1 capital ratio of 14.8% demonstrates the bank’s liquidity and financial strength. The positive financial results are a testament to the strength of UBS’s business and client franchises, as well as its ability to make progress on integration plans.
UBS CEO Sergio Ermotti emphasized the bank’s ability to deliver significant progress on integration plans while optimizing financial resources. He expressed confidence in the bank’s business and client franchises, which contributed to the reported net profits and capital accretion in the first quarter of the year. Despite a more lackluster start to 2024, with UBS shares dipping 4.6%, the strong performance in the first quarter indicates a positive outlook for the future. The bank’s ability to exceed analyst expectations and report a net profit of $1.8 billion showcases its resilience and strategic management.
Overall, UBS’s performance in the first quarter of 2024 exceeded expectations, with a net profit of $1.8 billion and group revenue totaling $12.74 billion. The bank’s success was attributed to lower expenses following the takeover of Credit Suisse and a strong performance in its business and client franchises. The CET1 capital ratio of 14.8% indicates the bank’s liquidity and financial strength. CEO Sergio Ermotti highlighted the progress on integration plans and the optimization of financial resources as key factors in UBS’s positive performance. Despite a dip in shares in the early part of 2024, the bank’s strong performance in the first quarter suggests a promising future ahead.
