- UBS Group AG UBS Q1 revenues reached $8.75 billion vs. 9.38 billion a year ago, missing the consensus of $8.93 billion.
- Operating expenses were $7.2 billion from $6.6 billion a year ago.
- The Zurich-based said underlying pre-tax profit dropped 22% percent to $2.35 billion in the quarter compared to a year ago, while underlying revenues fell 8%.
- CET 1 capital ratio, a measure of bank solvency, came in at 13.9% vs. 14.1% a year ago
- Related: UBS Executives Say Surprise Credit Suisse Acquisition Is a ‘Major Challenge’
- It reported a 52% slide in quarterly income to $1.03 billion, having made an additional $665 million in provisions to cover litigation costs related to U.S. residential mortgage-backed securities.
- UBS’s wealth management division received $28 billion in net new money, a quarter of which $7 billion came in the last ten days of March after the announcement that it would be taking over Credit Suisse.
- The net inflows at UBS contrasted the CHF 61 billion in outflows that Credit Suisse reported Monday for the first three months of the year, adding that clients are still withdrawing assets.
- “As clients repositioned their investments in response to interest rate increases, we captured demand for higher yield into money market funds and US-government securities,” UBS said.
- Investment bank revenue fell 19% year-on-year, and profit before tax for the division slumped 49%.
- UBS said it expects the takeover of Credit Suisse to close in the second quarter.
- Price Action: UBS shares are down 1.41% at $20.27 during the premarket session on the last check Tuesday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.