UBS reported a net income of $3 billion in Q1, an 80% increase from last year, surpassing analysts’ expectations. The common equity tier (CET) 1 capital ratio rose to 14.7%. The bank announced plans for a $3 billion share buyback, having already executed $900 million in buybacks over three months. CEO Sergio Ermotti noted strong performance across various divisions despite ongoing geopolitical tensions, particularly related to the U.S.-Iran conflict, which the market hopes will lead to a resolution.
While UBS expects net interest income to remain flat in Q2, pre-tax profit reached $3.9 billion, up 54% year-over-year. The global wealth management division saw net new assets of $37 billion, reflecting annual growth. UBS opposes new regulatory requirements that would necessitate holding additional capital. Ermotti also mentioned a stable outlook for the private credit sector, highlighting the bank’s diversification and quality of exposure.
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