The wealth management unit of UBS has posted profit before tax of CHF557m for the first quarter of 2016, down 41% from CHF951m a year ago.
For the quarter ended 31 March 2016, the division’s adjusted profit before tax was CHF636m, a decrease of 26% from CHF856m in the first quarter of 2015.
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The unit’s total operating income slumped 16% to CHF1.88bn from CHF2.24bn in the prior year, while net interest income increased 3% to CHF579m from CHF560m a year earlier.
Total operating expenses at the unit increased 2% to CHF1.32bn from CHF1.29bn during the same quarter in 2015.
Net new money for the wealth-management arm was CHF15.5bn, driven by net inflows from all regions, particularly strong flows from Asia Pacific. Net new money from ultra high net worth clients was CHF13.3bn.
The unit’s invested assets were CHF925bn, down 5% compared to CHF970bn in the year-ago quarter.
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By GlobalDataWealth Management Americas posted a profit before tax of $212m, a fall of 21% from $268m in the corresponding period in 2015.
The unit’s total operating income decreased slightly to $1.89bn from $1.90bn a year ago, while total operating expenses rose 3% to $1.68bn from $1.63bn a year ago.
Net new money at the unit was $13.6bn during the period, the Swiss lender said in its earnings statement.
Asset Management unit reported a profit before tax of CHF90m, a fall of 46% from CHF168m in the first quarter of 2015. Adjusted profit before tax slumped 41% year-on-year to CHF110m.
Excluding money market flows, net new money outflows at the unit were CHF5.9bn.
Overall, the group posted a net profit attributable to shareholders of CHF707m in the first quarter, down 64% compared to CHF1.97bn a year ago.
UBS CEO Sergio Ermotti said: "The resilient results we delivered in challenging market conditions reflect our discipline and focus, as well as our diversified business model. In view of exceptionally low client activity levels, we continued to manage our resources effectively while making progress on costs."
