UBS posts disappointing figures for first quarter
- 6 months ago
Swiss bank UBS posted a 27% drop in net profit for the first quarter of 2019, compared to the same period in the previous year.
However, net income for the first quarter came in at $1.1 billion, which was considerably higher than the predicted $848 million by analysts.
Nevertheless, that figure was lower than the $1.57 billion reported in the previous year, which the bank considered a strong performance.
Operating income of $7.2 billion, versus $8.2 billion a year ago, while return on tangible equity of 9.8%, versus 13.5% a year ago and common equity tier 1 capital ratio of 13%, versus 13.1% a year ago.
UBS CEO Sergio Ermotti said that it was a “very challenging quarter” and that he was “pleased” with the resilience of the results, nonetheless.
The bank’s wealth management division and its investment banking unit saw much lower operating profits than in the first quarter of 2018, with the latter registering an operating profit of $873 million, compared to $1.1 billion a year ago.
In investment banking, operating income slid to $221 million from $619 million a year ago, something UBS feels it was caused by the challenging trading environment, mainly in Europe and Asia.
Source: Smart Trend Team