The Swiss banking large, UBS ended the primary quarter of 2023 with a 52 p.c annual drop in its revenue, primarily as a result of a provision of $665 million for a US residential mortgage-backed securities litigation matter. The financial institution’s web revenue got here in at $1.03 billion, which is down from analysts’ expectations of $1.75 billion.
Income for the quarter dropped to $8.75 billion from $9.38 billion a yr in the past. Funding banking charges decreased 30 p.c to $383 million. Buying and selling income additionally took a success of 17 p.c to return in at $1.7 billion as a result of a decline of 23 p.c within the financial institution’s equities unit.
Additionally, the financial institution’s working bills elevated to $7.2 billion from $6.6 billion a yr in the past. The CET1 capital ratio got here in at 13.9 p.c in comparison with 14.1 p.c a yr in the past.
On high of that, the Swiss lender revealed that it attracted $28 billion in new funds to its wealth administration unit, $7 billion of which had been added within the final ten days of March following the announcement of the Credit score Suisse takeover. In the meantime, Credit score Suisse misplaced round $69 billion in buyer deposits within the first three months of 2023.
UBS agreed to take over its rival Credit score Suisse for CHF 3 billion, which is a deal backed and rushed by the Swiss authorities to keep away from a US-like banking sector disaster. The huge merger is anticipated to take three years to shut.
Furthermore, Credit score Suisse introduced its Q1 outcomes just lately, highlighting a pre-tax revenue of CHF 12.8 billion and a CET1 capital ratio of 20.3 p.c. Its income declined by 40 p.c, and the ultimate adjusted pre-tax loss amounted to CHF 1.3 billion, witnessing a rise of CHF 300 million in comparison with This autumn 2022.
UBS has already spent $70 million on the Credit score Suisse acquisition, totally on advisory charges. Moreover, the financial institution introduced again its former CEO, Sergio Ermotti, to supervise the historic merger.
Market Response
The Switzerland-listed share costs of UBS dropped greater than 4.33 p.c following the announcement of the financial institution’s quarterly outcomes. Credit score Suisse shares additionally dipped greater than 3.44 p.c, although the 2 firms’ funds should not but merged. Nevertheless, the shares of UBS strengthened by 10 p.c for the reason that Credit score Suisse takeover deal was introduced.
UBS share value on Tuesday
In the meantime, Swiss prosecutors are probing into the merger of UBS and Credit score Suisse for attainable violation of the nation’s legal legal guidelines. Moreover, the lawmakers of the decrease home of the Swiss parliament just lately voted in opposition to the federal government’s monetary assure for the deal, however the voting was relatively symbolic.
The Swiss banking large, UBS ended the primary quarter of 2023 with a 52 p.c annual drop in its revenue, primarily as a result of a provision of $665 million for a US residential mortgage-backed securities litigation matter. The financial institution’s web revenue got here in at $1.03 billion, which is down from analysts’ expectations of $1.75 billion.
Income for the quarter dropped to $8.75 billion from $9.38 billion a yr in the past. Funding banking charges decreased 30 p.c to $383 million. Buying and selling income additionally took a success of 17 p.c to return in at $1.7 billion as a result of a decline of 23 p.c within the financial institution’s equities unit.
Additionally, the financial institution’s working bills elevated to $7.2 billion from $6.6 billion a yr in the past. The CET1 capital ratio got here in at 13.9 p.c in comparison with 14.1 p.c a yr in the past.
On high of that, the Swiss lender revealed that it attracted $28 billion in new funds to its wealth administration unit, $7 billion of which had been added within the final ten days of March following the announcement of the Credit score Suisse takeover. In the meantime, Credit score Suisse misplaced round $69 billion in buyer deposits within the first three months of 2023.
UBS agreed to take over its rival Credit score Suisse for CHF 3 billion, which is a deal backed and rushed by the Swiss authorities to keep away from a US-like banking sector disaster. The huge merger is anticipated to take three years to shut.
Furthermore, Credit score Suisse introduced its Q1 outcomes just lately, highlighting a pre-tax revenue of CHF 12.8 billion and a CET1 capital ratio of 20.3 p.c. Its income declined by 40 p.c, and the ultimate adjusted pre-tax loss amounted to CHF 1.3 billion, witnessing a rise of CHF 300 million in comparison with This autumn 2022.
UBS has already spent $70 million on the Credit score Suisse acquisition, totally on advisory charges. Moreover, the financial institution introduced again its former CEO, Sergio Ermotti, to supervise the historic merger.
Market Response
The Switzerland-listed share costs of UBS dropped greater than 4.33 p.c following the announcement of the financial institution’s quarterly outcomes. Credit score Suisse shares additionally dipped greater than 3.44 p.c, although the 2 firms’ funds should not but merged. Nevertheless, the shares of UBS strengthened by 10 p.c for the reason that Credit score Suisse takeover deal was introduced.
UBS share value on Tuesday
In the meantime, Swiss prosecutors are probing into the merger of UBS and Credit score Suisse for attainable violation of the nation’s legal legal guidelines. Moreover, the lawmakers of the decrease home of the Swiss parliament just lately voted in opposition to the federal government’s monetary assure for the deal, however the voting was relatively symbolic.
