UBS has reported a 52% drop in its net profit at $1.03bn for the first quarter that ended 31 March 2023 (Q1 2023), compared to $2.13bn reported in the same quarter of 2022.
In the fourth quarter of 2022, the net profit of UBS was $1.65bn.
The diluted earnings per share (EPS) of the Swiss lender for the reported quarter was $0.32, which is a decrease of 36%, compared to $0.5 in Q1 2022.
UBS’ total revenues in Q1 2023 were $8.74bn, which is 7% lower than the revenues of $9.38bn in Q1 2022. In the preceding quarter, that is Q4 2022, the banking group’s revenues were $8.03bn.
The reported quarter saw provisions of $665m pertaining to the residential mortgage-backed securities (RMBS) litigation matter in the US. Besides, net credit loss expenses in Q1 2023 were $38m, compared with net expenses of $18m in the same quarter of the previous year.
UBS’ global wealth management (GWM) business saw its total revenues drop by 2% year-over-year (YoY) to $4.8bn.
The personal & corporate banking (P&C) of the bank had an 18% increase YoY in total revenues to CHF1.18bn ($1.32bn).
In the asset management business, the total revenues of UBS were down by 13% YoY to $502m.
UBS’ investment banking unit saw a 19% decrease in total revenues in Q1 2023 to $2.35bn.
UBS Group CEO Sergio Ermotti said: “Our solid underlying performance and strong inflows this quarter demonstrate that we continue to be a source of stability for our clients during periods of significant uncertainty.
“Our balance sheet for all seasons and a diversified and capital-generative business model allowed us to be part of the solution in a critical moment for the Swiss and global financial systems.”
Last month, UBS signed a deal to acquire rival Swiss banking group Credit Suisse for CHF3bn ($3.3bn). The former expects the combination with Credit Suisse to bolster its position as a global wealth manager with nearly $5 trillion in invested assets.
