Swiss bank UBS posts $1b profit
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.
Frequently Asked Questions about this Article…
UBS reported a US$1 billion net profit in the first quarter (about US$971 million), according to its results published for the period.
The profit was lifted by strong showings from UBS’s investment bank and its wealth management arm for high‑net‑worth clients, which the bank highlighted as the main contributors.
In the first quarter the investment bank recorded a profit of 977 million Swiss francs before taxes (roughly A$1 billion), while the wealth management arm posted 664 million francs before taxes.
The US$1 billion Q1 result was down 4.5% compared with the same period a year earlier, but represented a major turnaround from the US$2 billion loss UBS posted in the fourth quarter of 2012.
CEO Sergio Ermotti said it was ‘too early to declare victory’ but that the results showed the bank’s business model works in practice; he also noted markets improved but the bank still faced challenges.
Yes. UBS said its capital cushion, as required by global and Swiss regulations, rose to 10%, and the bank described this leading capital cushion as a competitive advantage.
Yes. The article notes UBS had faced a series of lawsuits, scandals and a wave of restructuring that contributed to the US$2 billion loss in the fourth quarter of 2012.
The report shows UBS returned to profitability with strong results from investment banking and wealth management and an improved 10% capital cushion—facts that indicate a turnaround from the prior quarter’s loss, according to the bank’s own comments.
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