UBS AG group has reported a net income of CHF988 million for the first quarter of 2013, a decline of 5% compared to CHF1.04 billion reported for the year ago quarter.

The Swiss bank’s wealth management unit however delivered the highest levels of quarterly net new money since 2007, and the highest quarterly profit since 2009. The bank said that combined inflows into its wealth management businesses increased to almost CHF24 billion.

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The bank in its statement said that wealth management’s profit before tax in the first quarter was CHF664 million compared with CHF398 million. The gross margin on invested assets increased 6 basis points to 91 basis points, mainly reflecting an upturn in transaction-based income.

The unit’s operating expenses decreased to CHF1.25 billion from CHF1.35 billion, mainly due to seasonally lower general and administrative expenses. The unit saw net new money inflows of CHF15 billion during the quarter represented the highest quarterly net inflows since 2007.

Wealth Management Americas profit before tax was $251 million compared with a profit before tax of $216 million in the prior quarter.

The bank’s global asset management division reported profit before tax of CHF190 million for the first quarter compared with CHF148 million in the fourth quarter of 2012. Total operating expenses were CHF327 million compared with CHF343 million in the fourth quarter.

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Excluding money market flows, asset management division’s net new money inflows were CHF5.1 billion compared with net outflows of CHF3.8 billion in the prior quarter. The cost/income ratio was 63.2% compared with 69.9% in the fourth quarter.

In a statement accompanying the results, chief executive Sergio Ermotti said that "while it is too early to declare victory, we have shown our business model works in practice."