Fifteen analysts polled by UBS estimated first-quarter earnings at $1.7 billion. Revenue fell to $8.75 billion from $9.38 billion a year ago.
As the world’s largest asset manager, UBS also reported an inflow of $42 billion from clients in the first three months of the year. Its flagship wealth management division raised $28 billion in net new money, $7 billion of which came in the last ten days of March, following the Credit Suisse takeover announcement.
For comparison, Credit Suisse clients withdrew about $53 billion from their bank in the quarter. At the end of March, UBS managed assets totaling $4.16 trillion. At the end of December, it was 3.96 trillion dollars.
UBS also warned that geopolitical tensions and recent concerns about liquidity in the banking sector are reducing client activity and could affect new money in the coming months. Retaining both clients and assets will be a key task for Sergio Ermotti, who has returned as UBS chief executive to oversee the Credit Suisse takeover and restructuring.
Credit Suisse is the second largest bank in Switzerland. But in March, it ran into such serious problems that it began to threaten the financial stability of the global banking sector. Therefore, the Swiss government, the central bank and the regulatory authorities intervened in the matter, which negotiated the rescue of the bank so that it will be taken over by its larger domestic rival UBS for three billion Swiss francs (more than CZK 71 billion). He will also receive losses of up to five billion francs.
Credit Suisse saw massive asset outflows in the first quarter
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