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.
BGC Group Secures Backing from Global Banks for New $600M Trading Platform
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
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#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
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#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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