UBS swings back to profit and smashes earnings expectations for the first quarter

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It is the Swiss banking giant's first earnings report in the black since it completed the acquisition of fallen rival Credit Suisse.

on Tuesday reported a swing back to profit after two quarterly losses as it smashed first-quarter expectations, with results bolstered by higher wealth management revenues.in June 2023 also helped the bank post a net profit of $1.8 billion in the first quarter, ahead of a consensus forecast in an LSEG poll of $721.4 million.

The Swiss banking giant is continuing to process the mammoth integration of its former rival. The firm said Tuesday that it expects to complete the merger of UBS AG and Credit Suisse AG into a single U.S. intermediate holding company in the second quarter, and the merger of its Swiss entities in the third quarter.Group revenue in the first quarter totaled $12.74 billion, also higher than expected and up from $10.86 billion in the fourth quarter of 2023.

The bank's CET1 capital ratio, a measure of liquidity, was 14.8%, compared to 14.4% the previous quarter. "This quarter marks the return to reported net profits and further capital accretion, 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," Group CEO Sergio Ermotti said in a statement.

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