Swiss financial institution UBS says it took in $28 billion of web new cash for its wealth administration enterprise within the first quarter, with $7 billion of that coming after the announcement of its government-backed takeover of ailing rival Credit score Suisse
GENEVA — Swiss banking big UBS mentioned Tuesday it took in $28 billion of web new cash for its wealth administration enterprise within the first quarter, with $7 billion of that coming within the days after the announcement of its government-backed takeover of ailing rival Credit score Suisse.
The Zurich-based financial institution, which is about to turn into Switzerland’s banking titan after the merger closes in coming months, mentioned underlying pre-tax revenue dropped 22 p.c to $2.35 billion within the quarter in comparison with a yr in the past, whereas underlying revenues fell 8 p.c.
UBS mentioned it had purchased again $1.3 billion price of its shares through the quarter, and reiterated that the share-buyback program has been quickly suspended forward of the closing of the three billion Swiss franc ($3.4 billion) takeover of Credit score Suisse introduced on March 19.
“Within the first quarter, we maintained Positive momentum throughout the agency and attracted $28 billion of web new cash in GWM (International Wealth Administration), of which $7 billion got here within the final 10 days of March, after the announcement of our acquisition of Credit score Suisse,” UBS mentioned in an announcement.
The financial institution mentioned it “captured demand” for greater yield into cash market and U.S.-government securities at a time of rising rates of interest that may enhance the return on lower-risk property like U.S. authorities bonds.
“We delivered these outcomes throughout 1 / 4 characterised by persistent issues about rates of interest and financial development exacerbated by questions concerning the stability of the banking system, particularly within the U.S.,” UBS mentioned. “Towards this backdrop, non-public and institutional traders’ exercise remained muted.”
The online inflows at UBS got here in marked distinction to the 61 billion Swiss francs (practically $69 billion) in outflows that Credit score Suisse reported Monday for the primary three months of the yr, including that shoppers are nonetheless withdrawing property.
The compelled marriage of Switzerland’s two largest banks — organized by the Swiss govt department, central financial institution and monetary markets regulator — was designed partially to assist stabilize the worldwide monetary system that had been roiled by the collapse of two U.S. banks.
The repute of 167-year-old Credit score Suisse had been pummeled in recent times over inventory worth declines, a string of scandals and the flight of consumers frightened concerning the financial institution’s future.