Zurich (AFP) – Swiss banking giant UBS on Wednesday reported that net profit rose a better-than-expected 80 percent to $3 billion in the first quarter, lifted by its investment banking arm. Revenue climbed 13 percent from the same period last year to $14.2 billion despite “a volatile and unpredictable geopolitical and market environment,” the bank said in a statement. Analysts surveyed by the Swiss AWP news agency had forecast on average a profit of $2.4 billion and revenue of $13.4 billion.
“In an increasingly complex environment, we have delivered excellent 1st quarter results,” chief executive Sergio Ermotti said during a call with analysts. The bank said in the statement that investment banking revenue rose 27 percent from the previous year. Shares in the company jumped 4.7 percent in afternoon trading while the main Swiss stock index shed 0.5 percent.
In 2023, UBS agreed to acquire its former competitor Credit Suisse under pressure from the Swiss authorities to prevent its collapse. Given UBS’s massive size following the merger, Swiss authorities have sought to strengthen banking regulations to ensure its resilience in the event of macroeconomic or financial market shocks. UBS says the government’s proposals are too onerous.
“On the topic of Swiss capital requirements, we will continue to engage constructively and contribute to fact-based deliberations,” Ermotti said. Major American investment banks such as Morgan Stanley and Goldman Sachs have also posted better-than-expected results in the first quarter, driven by their equity brokerage and mergers and acquisitions activities.
© 2024 AFP
