UBS Group AG said Tuesday that earnings declined in the first quarter, hurt by litigation, but that the bank drew in billions in net new money at its global wealth-management business following the news of its acquisition of Credit Suisse Group AG.
The Swiss bank
UBS,
UBSG,
said its result was affected by $665 million in provisions related to U.S. residential mortgage-backed securities litigation.
UBS made $1.03 billion in net profit in the first three months of the year compared with $2.14 billion in the prior-year period, on revenue that declined 6.8% to $8.74 billion.
The result compares with analysts’ expectations of $1.71 billion in net profit and revenue of $8.79 billion, according to a company-provided consensus.
UBS said net new fee-generating assets at its key global wealth-management business came to $19.7 billion in the quarter, compared with $23.3 billion in the last quarter of 2022.
It said that it drew in $28 billion in new net money at its global wealth-management business, of which $7 billion came in the last 10 days of March.
UBS, which agreed in March to acquire Credit Suisse, said it intends to actively reduce the risk and resource consumption of Credit Suisse’s investment banking business and said that it will most likely complete the deal in the second quarter of the year.
Write to Pierre Bertrand at [email protected]
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