$1.8 billion net profit from UBS in the first quarter
Switzerland’s largest bank, UBS, announced a net profit of $1.8 billion in the first quarter.
UBS Group AG announced its financial results for the first quarter.
Accordingly, UBS’s net profit in the first quarter exceeded analyst expectations and reached 1.8 billion dollars. Analysts expected a net profit of about $600 million from the bank.
The bank’s revenues increased by 15 percent to 12 billion dollars.
Reduced expenses following the takeover of rival Credit Suisse in June 2023 helped the bank post a profit in the first quarter.
It was noteworthy that UBS also made a profit in its investment banking unit. Thanks to a recovery in the share market and bond issuance business, the unit’s pre-tax profit was $400 million, following a $300 million loss in the fourth quarter of 2023.
The bank purchased Credit Suisse, which was in crisis, for $3.8 billion.
UBS was planning to achieve more than $10 billion in cost savings by 2026 after its acquisition of Credit Suisse.
After the banking crisis that started in the USA in March 2023, there was also a Credit Suisse panic in Europe. The developments that took place after Credit Suisse’s largest partner, the Saudi National Bank, announced that it would not increase capital, dragged the bank to the brink of bankruptcy.
In June 2023, UBS purchased the 167-year-old Credit Suisse, which was experiencing a crisis with the government’s 200 billion franc liquidity support, for $3.8 billion. UBS’s acquisition of Credit Suisse was recorded as the largest bank acquisition deal since the global financial crisis in 2008.
Meanwhile, after the announcement of its financial results, UBS’s share price increased by 8 percent, the highest daily increase since March 2023.