UBS earnings q1 2021

The emblem of Swiss banking large UBS engraved on the wall is seen on its headquarters on Might 8, 2019 in Zurich. Fabrice Coffrini | AFP | Getty Photos LONDON — UBS reported on Tuesday web revenue of $1.8 billion for the primary quarter of 2021, because it revealed successful to earnings from the scandal


The emblem of Swiss banking large UBS engraved on the wall is seen on its headquarters on Might 8, 2019 in Zurich.

Fabrice Coffrini | AFP | Getty Photos

LONDON — UBS reported on Tuesday web revenue of $1.8 billion for the primary quarter of 2021, because it revealed successful to earnings from the scandal involving Archegos Capital.

The Swiss financial institution mentioned revenues have been $774 million decrease on account of the default by the Archegos hedge fund, which collapsed final month after taking over an excessive amount of danger. The U.S.-based household workplace was a shopper of UBS’ prime brokerage enterprise.

UBS mentioned Tuesday it had exited all publicity to Archegos and any associated losses within the second quarter could be “immaterial” for the financial institution.

Quite a few banks have been affected by the scandal, together with Credit score Suisse, which reported final week a web loss for the quarter on the again of a 4.4 billion Swiss franc ($4.8 billion) hit from the collapse of the identical U.S. hedge fund.

“Our first quarter outcomes additionally factored in a loss associated to the default by a single US-based prime brokerage shopper. We’re all clearly disillusioned and are taking this very significantly,” Ralph Hamers, UBS’s CEO mentioned in an announcement, including {that a} detailed assessment of danger administration was underway.

UBS’ web revenue for the primary quarter marked a 14% improve from a 12 months earlier. Analysts had anticipated the determine to return in at $1.6 billion over the interval, based on Refinitiv.

Going ahead, UBS mentioned that revenues within the second quarter will probably be affected by “seasonal elements,” similar to decrease shopper exercise in comparison with the primary three months of the 12 months. The Swiss financial institution expects a constructive impact from increased asset costs, however warned that there’s “continued uncertainty” concerning the financial restoration, which might affect its subsequent earnings.

Different highlights for the quarter:

  • Working revenue hit $8.7 billion from $7.9 billion a 12 months in the past.
  • Working bills got here in at $6.4 billion from $5.9 billion a 12 months in the past.
  • CET 1 ratio, a measure of financial institution solvency, reached 14% versus 12.8% a 12 months in the past.



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