Key Takeaways
- UBS Group returned to a profit after two quarters of losses as it cut costs and moved forward with its integration of Credit Suisse.
- The Swiss bank purchased struggling rival Credit Suisse in a government-backed bailout in March 2023.
- UBS said integration plans moved “at pace,” and it cut about $1 billion more in costs.
UBS Group (UBS) shares soared in intraday trading Tuesday after the Swiss bank returned to a quarterly profit as it continued to integrate former rival Credit Suisse, which it absorbed in a government-backed bailout in March 2023.
Return to Profit
UBS posted first-quarter net income of $1.76 billion—three times the consensus estimate by Visible Alpha—or $0.52 per diluted share. The gains came after two consecutive quarters of losses.
Total revenue jumped 45.7% year-over-year to $12.74 billion, also better than expected. The key global wealth unit saw revenue increase 28.3% to $6.14 billion.
The company noted that its Credit Suisse integration plans moved “at pace,” adding that it realized an additional approximately $1 billion in gross cost savings.
‘Significant Progress on Our Integration Plans’
Chief Executive Officer (CEO) Sergio Ermotti said that the results were “a testament to the strength of our business and client franchises and our ability to deliver significant progress on our integration plans while actively optimizing our financial resources.”
UBS said it plans to transition to a single U.S. intermediate holding company in the current quarter, and merge its Swiss entities in the third quarter.
UBS shares traded in the U.S. were up 6.6% to $29.42 around noon ET Tuesday.