Raised more than $25 billion of net new money in its wealth management business in the first quarter
MADRID, 25 Abr. (EUROPA PRESS) -
The Swiss bank UBS obtained an attributable net profit of 1,029 million dollars (931 million euros) in the first three months of 2022, which represents a drop of 51.8% compared to the result recorded by the entity in the first quarter of the previous year, reported the bank, which in mid-March reached an agreement to acquire Credit Suisse.
The fall in the result of the largest Swiss bank in the first quarter of the year reflects in part the adverse impact of the increase of 665 million dollars (601 million euros) in provisions related to the litigation of residential mortgage-backed securities (RMBS) in USA.
The operating turnover of UBS between January and March reached 8,744 million dollars (7,909 million euros), 6.8% below the income of the first quarter of 2022.
Specifically, UBS's net interest income totaled 1,388 million dollars (1,255 million euros), 21.6% less, while commission income decreased by 14%, to 4,606 million dollars (4,166 million euros ).
On the other hand, UBS's return (RoE) in the first quarter of 2023 stood at 7.2%, compared to 14.3% a year earlier, while the CET1 top quality capital ratio was 13 .9%, compared to 14.2% at the close of the previous quarter.
In its analysis, the Swiss entity highlighted the environment characterized by persistent concerns about interest rates and economic growth during the quarter, exacerbated by doubts about the stability of the banking system, especially in the US, which kept the activity of private and institutional investors.
However, UBS highlighted that in the first quarter it attracted 28,000 million dollars (25,326 million euros) of net new money in its wealth management business, of which 7,000 million dollars (6,331 million euros) arrived in the last ten days of March, after the announcement of the acquisition of Credit Suisse.
Likewise, the bank also recorded 20,000 million dollars (18,090 million euros) in new net assets generating commissions in the wealth management business, as well as new net income of 14,000 million dollars (12,663 million euros) in asset management .
Regarding the merger and integration process with Credit Suisse, the bank has expressed confidence that the combination will strengthen its position as a leading global wealth manager, also strengthening its position as a leading universal bank in Switzerland and enhance its complementary management capabilities. asset management and investment banking, while adding strategic scale in the most attractive growth markets.
In this regard, UBS has signaled its intention to actively reduce the risk and resource consumption of Credit Suisse's investment banking business.
UBS CEO Sergio Ermotti has underlined his initial goal to create clarity about the future operating model as soon as possible to ensure a clear division between the process needed to carry out the integration and having to manage the day-to-day business of both parties and preserve the value of the two franchises.
"The great challenge ahead is to keep the value of the two franchises as intact as possible and blend the two cultures, which will be a challenge, but also an opportunity," Ermotti said, adding that they will not rush to make decisions.
"There are many areas, in terms of product capabilities, but also in geographic scope, that we are extremely complementary," he has defended.