UBS records $28bn in revenue

Swiss banking giant UBS reported on Tuesday that it had attracted $28 billion in new money from affluent clients in the first quarter of 2023. Following the announcement of the takeover of its ailing rival, Credit Suisse, UBS attracted $7 billion in 10 days. The Zurich-based bank also reported $14 billion in new money to its asset management business.

The bank’s performance during the first quarter reflects its stability for clients during periods of uncertainty, said CEO Sergio Ermotti, who recently returned to UBS to oversee the Credit Suisse takeover. The company’s strong flows across global wealth management and asset management sectors reflect the continued confidence and trust of clients in UBS.

Despite the new inflows, UBS’s net profit in the first quarter decreased by 52% from the same period a year ago, posting nearly $1.04 billion. Profit was affected due to the $665 million UBS set aside to address additional anticipated expenses from a lawsuit by the US Justice Department alleging that the bank defrauded American investors with the sale of residential mortgage-backed securities that contributed to the 2008 global financial crisis.

In contrast to UBS’s positive growth, Credit Suisse has reported 61 billion Swiss francs, equivalent to nearly $69 billion, in outflows in the first three months of the year. The Swiss Government has engineered a $3.25 billion takeover of Credit Suisse, which is intended to rescue the ailing bank and stabilise the global financial system after the collapse of two US banks last month.

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