GENEVA — Swiss banking large UBS stated Tuesday that it took in $28 billion in new money from rich shoppers in the primary 3 months of the yr, with $7 billion of that coming in the ten days after the announcement it was once taking up in poor health rival Credit Suisse.
Zurich-based UBS, which is about to transform Switzerland’s unmarried banking titan after the merger closes in the approaching months, stated it additionally drew $14 billion in new money to its asset control industry.
“Our performance this quarter demonstrates that we continue to be a source of stability for our clients during periods of significant uncertainty,” said CEO Sergio Ermotti, who came back to UBS last month to shepherd the Credit Suisse takeover. “Our strong flows across global wealth management and asset management reflect our clients’ continued confidence and trust in us.”
UBS posted web benefit of just about $1.04 billion in the primary quarter, down 52% from the similar duration a yr in the past in spite of the new inflows. Profit was once decreased because the financial institution put aside $665 million to care for further anticipated prices of a U.S. Justice Department lawsuit alleging that the financial institution defrauded American traders with the sale of residential mortgage-backed securities that contributed to the 2008 international monetary disaster.
“We are in advanced discussions with the U.S. Department of Justice, and I’m pleased that we are making progress toward resolving this legacy matter that dates back 15 years,” Ermotti stated in a webcast.
UBS stated it purchased again $1.3 billion in stocks throughout the quarter however reiterated that the share-buyback program has been quickly suspended forward of the last of the three billion Swiss franc ($3.25 billion) government-engineered takeover of Credit Suisse introduced March 19.
The consumer inflows at UBS got here in marked distinction to the 61 billion Swiss francs (just about $69 billion) in outflows that Credit Suisse reported Monday for the primary 3 months of the yr. The financial institution stated shoppers are nonetheless chickening out belongings.
The pressured marriage of Switzerland’s two greatest banks — organized via the Swiss govt department, central financial institution and fiscal markets regulator — was once designed to rescue Credit Suisse and lend a hand stabilize the worldwide monetary device after the cave in of 2 U.S. banks final month.
The recognition of 167-year-old Credit Suisse were pummeled in fresh years over inventory worth declines, a string of scandals and the flight of shoppers anxious concerning the financial institution’s long run.
UBS stated it expects the takeover “to strengthen our position as a leading and truly global wealth manager,” whilst additionally acknowledging that it “will require sustained diligent effort.” Chairman Colm Kelleher has stated there is a “huge amount of risk” in combining the 2 international banks but in addition “huge opportunities.”
The financial institution additionally pointed to top inflation, sluggish financial enlargement, geopolitical tensions equivalent to Russia’s conflict in Ukraine and issues concerning the balance of banks being a conceivable drag in the approaching months.
“The macroeconomic situation going forward remains uncertain, and while concerns about the stability of banks have abated, they have not gone away,” UBS stated in a commentary. “As a result, client activity levels could remain subdued in the second quarter of 2023.”
UBS stocks had been down about 1.5% in noon buying and selling in Switzerland.
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