Swiss bank UBS posts $1b profit

Switzerland's biggest bank, UBS, has posted a $US1 billion ($971 million) net profit in the first quarter, lifted by strong showings from its investment bank and management for wealthy clients.

Switzerland's biggest bank, UBS, has posted a $US1 billion ($971 million) net profit in the first quarter, lifted by strong showings from its investment bank and management for wealthy clients.

The results posted on Tuesday by the bank, based in Zurich, were down 4.5 per cent from the comparable period a year ago. Still, it was a major turnaround from the $US2 billion loss the bank posted for the fourth quarter of 2012 in the wake of a series of lawsuits, scandals and a wave of restructuring.

"While it is too early to declare victory, we have shown our business model works in practice," UBS chief executive Sergio Ermotti said. "Although markets improved, we still saw challenges, so I am very pleased with our performance."

Mr Ermotti said the bank's capital cushion as demanded by global and Swiss regulations rose to 10 per cent "and our leading capital cushion continues to be a competitive advantage for the bank".

In the first quarter, the investment bank saw a profit of 977 million francs (about $A1 billion) before taxes and the wealth management arm posted a profit of 664 million francs before taxes.

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles