UBS reported a net profit of $3 billion for the first quarter, an increase of 80% compared to the same period last year. This figure exceeded analysts’ expectations of $2.8 billion, according to a consensus poll by LSEG. The Swiss bank’s common equity tier 1 (CET 1) capital ratio, which measures a bank’s financial health, rose to 14.7%, up from 14.4% in the previous quarter.
On Wednesday, UBS announced plans to buy back $3 billion in shares, having already repurchased $900 million during the quarter. The bank is also considering further share buybacks by the end of the year. Following the announcement, its shares rose more than 5% in early trading.
UBS noted that despite ongoing tensions in the Middle East, markets have remained resilient with hopes for a resolution. However, the bank warned that its net interest income could be “broadly flat” in the second quarter across its wealth management and banking sectors.
CEO Sergio Ermotti described the quarter as “very strong” and highlighted growth across the bank’s various business areas. Underlying profits before tax reached $3.9 billion, an increase of 54% year-on-year, surpassing analyst expectations.
The global wealth management division saw net new assets of $37 billion, reflecting a 3.1% increase. Switzerland’s government has proposed measures to prevent a banking crisis, which would require UBS to hold an additional $20 billion in capital. UBS has pushed back against this regulatory change.
