UBS Posts Stronger-Than-Expected 1Q, Books $100 Million Russia Hit -- Update
April 26 2022 - 2:06AM
Dow Jones News
By Cristina Roca
UBS Group AG posted first-quarter earnings ahead of analysts'
expectations despite a profit hit of about $100 million from its
Russia exposure.
The Swiss bank on Tuesday reported a quarterly net profit of
$2.14 billion compared with $1.82 billion a year earlier and
analysts' expectations of $1.79 billion, according to a
company-provided consensus.
UBS said the hit to its profit-and-loss accounts from its Russia
exposure was about $100 million. At the end of March, its direct
exposure to Russia amounted to $400 million, down from $600 million
at the end of 2021. It isn't doing any new business in the country
or with Russia-domiciled clients, it said.
Despite UBS's stronger-than-expected headline result, profit
before tax fell 7% at UBS's key global wealth management unit. As
part of its midterm plan, the bank wants to grow pretax profit at
the unit by 10%-15%. UBS said transaction-based income dropped,
mainly due to lower client activity, especially in the Asia-Pacific
region.
Operating income for the quarter came in at $9.36 billion, up 8%
on year. Analysts had expected operating income of $8.83 billion,
according to the same consensus.
The bank said it achieved these results in spite of increased
uncertainty in the quarter amid the Russian invasion of Ukraine,
Covid-19 lockdowns, a lower economic growth outlook and
inflationary pressures.
"Our clients continued to put their trust in us to navigate this
environment," UBS said.
UBS's investment bank booked a 28% jump in operating income,
reflecting a large loss a year earlier.
Write to Cristina Roca at cristina.roca@wsj.com
(END) Dow Jones Newswires
April 26, 2022 01:51 ET (05:51 GMT)
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