Source: AFP
Swiss banking giant UBS said on Tuesday that first-quarter net profit rose 71% to nearly $1.8 billion after two quarters in the red due to its takeover of Credit Suisse.
Switzerland’s biggest bank said turnover rose 46 percent to $12.7 billion.
Revenue at its investment bank — the biggest project in the integration of rival Credit Suisse — rose 16 percent on a more favorable market sentiment and strong performance in IPOs and mergers and acquisitions, according to a company statement.
In March 2023, Swiss authorities backed UBS into a $3.25 billion buyout to prevent Credit Suisse from collapsing with devastating consequences for the global financial system.
The results for the first three months of 2024 were a moment for the bank to review progress since the Credit Suisse integration.
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“A little over a year ago, we were asked to play a critical role in stabilizing the Swiss and global financial system through the acquisition of Credit Suisse, and we are delivering on our commitments,” said UBS chief executive Sergio Ermotti.
“This quarter marks a return to reported net earnings and further capital raising — a testament to the strength of our business and customer franchises and our ability to deliver significant progress on our integration plans while actively optimizing our financial resources .”
The megamerger combined two heavyweight banks that were pulling in diametrically opposite directions.
On the outlook, the bank said that while monetary easing is expected in the eurozone, the United States and Switzerland, “the timing and magnitude of interest rate cuts by central banks is unclear as inflation remains above its range their goal”.
“Furthermore, ongoing geopolitical tensions, coupled with subsequent elections in many major economies, continue to create uncertainty,” it said.
Source: AFP