UBS reported net profit of $1.8 billion for the January-March period, its first quarterly profit since the takeover of fallen rival Credit Suisse.
Net profit attributable to shareholders of Switzerland’s largest bank came in above the company-provided consensus estimate of $602 million and compared with a profit of $1 billion for the same period a year earlier.
UBS also said Tuesday that it achieved an additional $1 billion in gross savings in the first quarter, bringing the total savings to $5 billion. The goal is to achieve an additional $1.5 billion in savings by the end of the year.
The first merger of two globally systemically important banks – orchestrated by Swiss authorities who feared that scandal-plagued Credit Suisse was on the brink of collapse – was completed last June, after which UBS registered two consecutive quarters of losses due to its rival’s absorption costs.
Despite the explosive nature of the buyout, investors were optimistic about UBS’s prospects, given the low acquisition costs and the significant increase in its assets. The bank’s shares have soared some 40% over the past year.
The current year is expected to be a pivotal year for UBS as it tackles some of the trickier stages of integration, such as combining separate IT systems and legal entities, as well as migrating clients from Credit Suisse to UBS. (Reporting by Noele Illien; Editing by Edwina Gibbs)
