UBS Global Wealth Management recorded 31% increase year-on-year in net interest income in Q1 2023.
This was attributed to an increase in deposit revenues, reflecting the benefits from higher interest rates.
In addition, total revenues decreased 2% year-on-year to $4,792m from $4,904m.
For asset management, revenues fell 13% year-on-year and net new money was $14.4bn.
In Americas, Global Wealth Management attracted net new fee-generating assets of $4bn, with continued positive momentum in UBS’ SMA3 offering, which contributed $4.5bn of net new money in asset management. In the quarter we also saw $8bn net new money in Global Wealth Management, and continued momentum in advisor recruiting.
UBS and Credit Suisse in Q1 2023
UBS Group recorded $1.5bn profit before tax in Q1 2023, a 45% drop year-on-year. Total revenues also decreased, this time by 7% year-on-year.
The cost/income ratio was 82.5%. Net profit attributable to shareholders was $1,029m (-52% YoY), with diluted earnings per share of $0.32. The return on CET1 capital was 9.1%.
Sergio P. Ermotti, group CEO, said: “Our solid underlying performance and strong inflows this quarter demonstrate that we continue to be a source of stability for our clients during periods of significant uncertainty. Our balance sheet for all seasons and a diversified and capital-generative business model allowed us to be part of the solution in a critical moment for the Swiss and global financial systems.
“With the planned acquisition of Credit Suisse, we are taking another transformational step in UBS’s journey, while remaining committed to our culture, strategy and disciplined risk management. With this transaction, we expect to reinforce our position as a leading and truly global wealth manager with strategic scale and complementary capabilities in the most attractive growth markets.
“I am convinced that this transaction will help to reinforce the leading position of the Swiss financial center and will be of benefit to the entire economy. The combined firm presents a unique opportunity to generate significant, long-term value to all of our stakeholders.”