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April 26, 2022

UBS Q1 net profit surges 17%; slashes exposure to Russia by $200m

Swiss wealth manager UBS has posted net profit of $2.136bn for the first quarter of 2022, a surge of 17% from $1.82 reported a year ago.

The group’s operating income for the quarter ended 31 March 2022 stood at $9.36bn, an increase of 8% versus $8.71bn last year.

Return on tangible equity, a measure of profitability, rose to 16% from 14% a year ago, while CET 1 ratio was 14.3% as against 15% at the end of 2021.

Russia Exposure

During the quarter, the Swiss bank reduced it market risk exposure to Russia to $400m from $600m at end of 2021.

“Macroeconomic, geopolitical and market factors created a high level of uncertainty in the first quarter, with Russia’s invasion of Ukraine, COVID-related restrictions and lockdowns, higher volatility, the lower economic growth outlook, and concerns about higher inflation and the monetary policy response,” UBS said in its press statement.

Global Wealth Management

The Global Wealth Management (GWM) unit of UBS reported pre-tax profit of $1.31bn, down 7% compared with $1.41bn a year ago.

Total operating income rose by 1% to $4.9bn, while total operating expenses increased by 5% to $3.6bn.

Investment banking

Investment banking arm’s pre-tax profit surged 126% to $929m from $412m a year earlier.

Total operating income stood at $2.9bn, a jump of 28% compared with the year ago quarter.

Total operating expenses rose 6% to $1.97bn, primarily driven by an increase in variable compensation.

Asset Management

Asset management arm of UBS posted pre-tax profit of $174m, down 23% compared with $227m in the first quarter of 2021.

Total operating income decreased by $59m to $578m, while net management fees increased by $16m to $561m.

Comment

UBS Group CEO Ralph Hamers said: “In the first quarter, we remained focused on executing our strategy, providing stability for our clients and managing risk. Our strong results today speak to our ability to accomplish our objectives regardless of the backdrop.”

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