The upheaval in the banking ecosystem from the United States as it pertains to Silicon Valley Bank (SVB) triggered a ripple effect felt in Switzerland.
Shares of the Swiss multinational banking giant UBS Group AG (SWX: UBSG) is seeing a slight slide today after the firm revealed that its first-quarter net profit took a sharp decline. While still largely profitable, UBS said net profit for the quarter fell 52% from the previous year to $1.03 billion.
UBS said the decline in revenue was due to prolonged US residential mortgage-backed securities litigation. The company lost a total of $660 million in the quarter in this legal battle. While many may see the litigation and its rising costs as a negative, Sergio Ermotti, CEO of UBS, believes the case is ready for closure.
“We are in advanced discussions. Hopefully we can close this 15 year old chapter very soon Said,
Taking into account the outlook for the global financial ecosystem in Q1, UBS touched on some of its key growth metrics for the quarter. The Swiss giant said it posted total revenue of $8.75 billion, compared with $9.38 billion in the year-ago period. However, UBS disclosed that its operating expenses for the quarter rose to $7.2 billion in the previous quarter from $6.6 billion a year ago.
According to Ermotti, the company’s performance in the quarter is “very solid”, a testament to the bank’s ranking as one of the leading commercial banks in Switzerland and the European Economic Area (EEA). The company said its Global Wealth Management unit reported $28 billion in new money, an inflow that could be described as a vote of confidence from asset managers on the firm’s stability.
UBSG is down 2.64% in the last 24 hours and is changing hands at 17.72 CHF.
UBS profit undeterred by Credit Suisse
The upheaval in the banking ecosystem from the United States as it pertains to Silicon Valley Bank (SVB) triggered a ripple effect felt in Switzerland, ending more than 160 years of solvency. Credit Suisse Group AG (SWX: CSGN).
Credit Suisse was facing Swiss regulators over harsh bank operations started early Acquisition of the firm by UBS. In the current performance report, Ermotti said it believed that investors and the bank’s customers understood that UBS was part of Credit Suisse’s solution and not a profit, and as such, its profits from the acquisition deal were relatively unaffected.
In an interview with CNBC, he said, “We saw some flows coming out of Credit Suisse, but, more importantly, we continue to see post-transaction, we’ve seen flows, so there’s performance.” that our customers believe we are a source of sustainability.” , “We are part of the solution and not part of the problem.”
The acquisition is set to be completed by the end of this year and the full systems absorption is billed for 2-4 years from now.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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