Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
UBS has reported its first quarterly profit since taking over Credit Suisse as the Swiss lender begins to reap the benefits of rescuing its former rival.
The group on Tuesday reported $1.8bn in net profit for the first three months of the year, up from a $279mn loss in the previous quarter and almost three times the $602mn expected by analysts.
Its wealth management business was again a powerhouse during the quarter, attracting $27bn in net new assets as clients returned to the lender having pulled their assets from both UBS and Credit Suisse last year to avoid the disturbance caused by the takeover.
The bank also generated an additional $1bn in cost savings during the quarter, having eliminated $5bn in costs last year. UBS has said it aims to reduce costs by $13bn by the end of 2026.
“This quarter marks the return to reported net profits and further capital accretion — a testament to the strength of our business and client franchises and our ability to deliver significant progress on our integration plans while actively optimising our financial resources,” said chief executive Sergio Ermotti.
While UBS agreed to buy Credit Suisse in March 2023, the deal was not completed until last June.
The shotgun marriage was the first time two global systemically important financial institutions were merged, creating a wealth management behemoth.
But UBS executives have warned of a bruising and lengthy integration process that will take time to bed in. Ermotti has previously said 2024 would be the “pivotal year” for the takeover during which most costs would hit.