UBS Group AG (NYSE:UBS) said its wealth business attracted US$28bn of new money in the first quarter, benefiting from the deepening crisis at Credit Suisse that eventually saw the takeover of its embattled rival.
The update came as the Zurich-based firm reported a drop in first quarter income in a period "characterized" by persistent concerns about interest rates and economic growth, "exacerbated" by questions about the stability of the global banking sector.
Net profit fell 47% to US$1.03bn in the quarter while revenue rose 9% to US$8.74bn.
The bank said it expected to complete the acquisition of Credit Suisse next month and would provide more details about the integration and its plans to wind down much of its rival’s investment bank over the rest of the year.
UBS chief executive Sergio Ermotti said: “With this transaction, we expect to reinforce our position as a leading and truly global wealth manager with strategic scale and complementary capabilities in the most attractive growth markets.”
"While acknowledging the magnitude of, and complexity associated with, the integration and restructuring of Credit Suisse, we believe that this combination presents a unique opportunity to bring significant, long-term value to all of our stakeholders,” UBS said.
The bank’s CET1 capital ratio stood at 13.9%, slightly above its target of 13%, though below the previous year's 14.2% while return on equity stood at 7.2%, compared to 11.7% the year before.