UBS profits drop in Q1 amid 'challenging' conditions
UBS posted a drop in first-quarter pre-tax profit on Thursday amid "challenging" market conditions.
Reported pre-tax profit at the bank declined by 26% from the same period a year ago to $1.55bn, while adjusted pre-tax profit fell 21% to $1.58bn. Meanwhile, net profit attributable to shareholders slid 27% on the year to $1.14bn, but was above expectations of around $900m.
Group revenue declined 12% during the quarter to $7.2bn.
Adjusted pre-tax profit in the global wealth management arm was down 21% to $873m, while profit at the investment bank tumbled 64% at $221m. On the upside, however, the personal and corporate banking division saw profit rise 8% to CHF389m and the asset management business saw profit edge up 2% to $109m.
Revenue from equities fell 22% to $883m, reflecting reduced client activity amid "challenging" market conditions and lower market volatility,
The bank said its capital position remains strong, with a common equity tier 1 capital ratio of 13%.
Chief executive officer Segio P. Ermotti said: "The first quarter of 2019 was characterised by challenging market conditions, which improved towards the end of the quarter and into April.
"We're on track with the strategic initiatives we announced at our Investor Update last October, as well as the measures we put in place to mitigate market headwinds. Benefits from these measures should come in the second half of the year, supporting our attractive capital return plan for the year."
At 1050 BST, the shares were up 1% at CHF13.53.