UBS swings back to profit and smashes earnings expectations for the first quarter

UBS on Tuesday reported a net profit of $1.8 billion for the first quarter of the year, smashing analyst expectations.

Lower expenses following the takeover of Credit Suisse in June 2023 helped the bank post a net profit of $1.8 billion in the first quarter, ahead of a consensus forecast in an LSEG poll of $721.4 million.

Group revenue totaled $12.74 billion, also higher than expected and up from $10.86 billion in the fourth quarter of 2023.

The bank’s CET1 capital ratio, a measure of liquidity, was 14.8%, compared to 14.4% the previous quarter.

“This quarter marks the return to reported net profits and further capital accretion, a testament to the strength of our business and client franchises and our ability to deliver significant progress on our integration plans while actively optimizing our financial resources,” Group CEO Sergio Ermotti said in a statement.

UBS shares soared 51.7% last year but have had a more lackluster start to 2024, dipping 4.6% so far.

This is a breaking news story and will be updated shortly.