Swiss banking giant UBS posted sharply reduced first-quarter profit on Tuesday as it had to pay 665 million euros. US dollars for a potential payout in a US mortgage-backed securities lawsuit that dates back to 2008. financial crisis. File photo by Hugo Philpott/UPI | License photo
April 25 (UPI) — Swiss bank UBS’s net profit fell more than 50% to $1.04 billion in the first three months of this year. US dollars, according to the banking giant’s first quarter results announced on Tuesday.
The massive decline was not due to its takeover of troubled rival Credit Suisse in March, but to a $665 million loss. ‘ first quarter report.
General and administrative expenses also increased sharply, jumping by 857 million. USD to 2.07 billion
The bank continues negotiations with the parties to resolve the dispute. Group CEO Sergio Ermotti believes the 15-year-old matter will be closed.
Describing the bank’s first results after 3.7 billion USD acquisition of Credit Suisse, Ermotti said the bank’s core results and strong inflows show that UBS has continued to be a source of stability for its clients during periods of high uncertainty.
“Our all-season balance sheet and diversified and capital-generating business model have allowed us to be part of the solution at a critical moment in the Swiss and global financial system,” Ermotti wrote in the foreword of his report.
In the first quarter, UBS received 42 billion USD, including 28 billion USD of new money that has flowed into its wealth management business, of which $7 billion The USD came in the last 10 days after the Credit Suisse takeover on March 19.
However, revenue fell to $8.75 billion. USD from 9.38 billion USD over the same period in 2022, with spending rising to $7.2 billion. USD from 6.6 billion USD a year ago.
“We’ve seen some inflows from Credit Suisse, but more importantly, we’ve seen inflows even after the deal, we’ve seen inflows, which shows that our clients trust us to be a source of stability,” Ermotti said. said CNBC.
UBS said it hoped the merger with Credit Suisse, which is due to close in May, pending regulatory approval, would strengthen its position as a leading and “truly global” asset manager with about $5 trillion of invested assets.
“We also look forward to strengthening our position as the leading universal bank in Switzerland and strengthening our complementary investment banking and asset management capabilities, while increasing strategic scale in the most attractive growth markets,” the bank said.
The results came a day after Credit Suisse reported. 69 billion in the first quarter for the bank, which ended in an emergency rescue deal brokered by the government, the central bank and the Swiss Financial Market Supervisory Authority.
Credit Suisse’s pre-tax profit reached 14.3 billion. USD, as FINMA ordered 16.8 billion Without the write-down, the bank would have experienced a loss of 1.4 billion.
The bank said outflows continued despite stabilizing to much lower levels.