UBS Stock Up On Higher Q1 Results


Shares of UBS Group AG were gaining around 3 percent in the morning trading in Switzerland after the banking giant reported Tuesday higher profit in its first quarter with increased operating income mainly in Investment Bank.

Ralph Hamers, UBS Group CEO, said, “The first quarter was dominated by extraordinary geopolitical and macro events. Against this backdrop, we remained focused on executing our strategic plans, serving our clients and managing risk… All this led to our strong financial results this quarter. And we’ll continue to capture opportunities to drive growth while executing on our strategic plans as well as our vision to convene THE global ecosystem for investing.”

For the first-quarter, net profit attributable to shareholders was $2.14 billion, up 17 percent from last year’s $1.35 billion. Earnings per share were $0.61, higher than $0.49 a year ago.

Operating profit before tax climbed 19 percent to $2.73 billion from $2.30 billion last year.

Operating income increased 8 percent to $9.36 billion from last year’s $8.71 billion. Net interest income grew 10 percent to $1.77 billion from last year’s $1.61 billion. Fee and commission income, meanwhile, declined 5 percent to $5.84 billion.

Global Wealth Management or GWM unit recorded 7 percent drop in profit before tax, while net interest income increased 14 percent. Personal & Corporate Banking or P&C profit before tax grew 10 percent with 3 percent rise in operating income.

Asset Management or AM profit before tax plunged 23 percent due to 9 percent drop in operating income.

Investment Bank or IB profit before tax surged 126 percent with 28 percent rise in operating income. Excluding a $774 million loss on the default of a US-based client of prime brokerage business in last year’s first quarter, operating income would have decreased 5 percent.

Further, the company said it intends to repurchase a total of around $5 billion of shares during 2022.

In Switzerland, UBS shares were trading at 16.64 Swiss francs, up 2.5 percent.

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