FX.co ★ UBS Q1 Results Climb; To Complete Credit Suisse Merger On May 31

Swiss banking heavyweight, UBS Group AG, announced on Tuesday that its net profit attributable to shareholders for the first quarter surged 71% to $1.76 billion, a considerable improvement from $1.03 billion the previous year. Earnings for every share increased to $0.52 from $0.32 the prior year.

The company registered a year-on-year growth in its operating profit before tax from $1.50 billion to $2.38 billion. In the same vein, underlying profit before tax also escalated from $1.57 billion to $2.62 billion compared to last year.

UBS's total reported revenues also experienced a significant rise, growing by 46% from $8.74 billion to $12.74 billion. The Group's underlying revenues settled at $12.0 billion. UBS also outlined its target to realise approximately $1.5 billion in gross cost savings by the close of 2024.

Looking into the future, UBS predicts a low-to-mid single-digit decrease in net interest income in Global Wealth Management for the second quarter. This is due to anticipated modest declines in lending and deposit volumes and lower interest rates in Switzerland.

Additionally, UBS disclosed its plans to finalize its merger with Credit Suisse AG on May 31, contingent on the remaining regulatory approvals. The planned transition towards a single US intermediate holding company is slated for the second quarter of 2024. Meanwhile, the merger of Credit Suisse (Schweiz) AG and UBS Switzerland AG is being scheduled for the third quarter of 2024.