Its wealth management unit added $28 billion in new funds.
The Swiss banking giant, UBS ended the first quarter of 2023 with a 52 percent annual drop in its profit, primarily due to a provision of $665 million for a US residential mortgage-backed securities litigation matter. The bank's net profit came in at $1.03 billion, which is down from analysts' expectations of $1.75 billion.
A Drop in Revenue and Profit
Revenue for the quarter dropped to $8.75 billion from $9.38 billion a year ago. Investment banking fees decreased 30 percent to $383 million. Trading revenue also took a hit of 17 percent to come in at $1.7 billion due to a decline of 23 percent in the bank's equities unit.
Also, the bank's operating expenses increased to $7.2 billion from $6.6 billion a year ago. The CET1 capital ratio came in at 13.9 percent compared to 14.1 percent a year ago.
On top of that, the Swiss lender revealed that it attracted $28 billion in new finances to its wealth management unit, $7 billion of which were added in the last ten days of March following the announcement of the Credit Suisse takeover. Meanwhile, Credit Suisse lost around $69 billion in customer deposits in the first three months of 2023.
UBS agreed to take over its rival Credit Suisse for CHF 3 billion, which is a deal backed and rushed by the Swiss government to avoid a US-like banking sector crisis. The massive merger is expected to take three years to close.
Moreover, Credit Suisse announced its Q1 results recently, highlighting a pre-tax income of CHF 12.8 billion and a CET1 capital ratio of 20.3 percent. Its revenue declined by 40 percent, and the final adjusted pre-tax loss amounted to CHF 1.3 billion, witnessing an increase of CHF 300 million compared to Q4 2022.
UBS has already spent $70 million on the Credit Suisse acquisition, primarily on advisory fees. Additionally, the bank brought back its former CEO, Sergio Ermotti, to oversee the historic merger.
Market Reaction
The Switzerland-listed share prices of UBS dropped more than 4.33 percent following the announcement of the bank's quarterly results. Credit Suisse shares also dipped more than 3.44 percent, though the two companies' finances are not yet merged. However, the shares of UBS strengthened by 10 percent since the Credit Suisse takeover deal was announced.
The Swiss banking giant, UBS ended the first quarter of 2023 with a 52 percent annual drop in its profit, primarily due to a provision of $665 million for a US residential mortgage-backed securities litigation matter. The bank's net profit came in at $1.03 billion, which is down from analysts' expectations of $1.75 billion.
A Drop in Revenue and Profit
Revenue for the quarter dropped to $8.75 billion from $9.38 billion a year ago. Investment banking fees decreased 30 percent to $383 million. Trading revenue also took a hit of 17 percent to come in at $1.7 billion due to a decline of 23 percent in the bank's equities unit.
Also, the bank's operating expenses increased to $7.2 billion from $6.6 billion a year ago. The CET1 capital ratio came in at 13.9 percent compared to 14.1 percent a year ago.
On top of that, the Swiss lender revealed that it attracted $28 billion in new finances to its wealth management unit, $7 billion of which were added in the last ten days of March following the announcement of the Credit Suisse takeover. Meanwhile, Credit Suisse lost around $69 billion in customer deposits in the first three months of 2023.
UBS agreed to take over its rival Credit Suisse for CHF 3 billion, which is a deal backed and rushed by the Swiss government to avoid a US-like banking sector crisis. The massive merger is expected to take three years to close.
Moreover, Credit Suisse announced its Q1 results recently, highlighting a pre-tax income of CHF 12.8 billion and a CET1 capital ratio of 20.3 percent. Its revenue declined by 40 percent, and the final adjusted pre-tax loss amounted to CHF 1.3 billion, witnessing an increase of CHF 300 million compared to Q4 2022.
UBS has already spent $70 million on the Credit Suisse acquisition, primarily on advisory fees. Additionally, the bank brought back its former CEO, Sergio Ermotti, to oversee the historic merger.
Market Reaction
The Switzerland-listed share prices of UBS dropped more than 4.33 percent following the announcement of the bank's quarterly results. Credit Suisse shares also dipped more than 3.44 percent, though the two companies' finances are not yet merged. However, the shares of UBS strengthened by 10 percent since the Credit Suisse takeover deal was announced.
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
ASX Faces $150M Capital Charge After Scathing Inquiry Finds Years of Neglect
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
