UBS increases its profit by 14.3% in the first quarter, despite the Archegos case

UBS’s net interest income totaled $ 1,613 million (€ 1,336 million), 21.3% more than a year earlier.

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Swiss bank UBS made an attributable net profit of $ 1,824 million (1,511 million euros) in the first three months of the year, which represents an improvement of 14.3% compared to the result recorded by the entity in the same period of 2020, despite the adverse impact related to the collapse of the Archegos fund.

“The default by a client based in the US resulted in an impact on the net profit of the first quarter of 434 million dollars (359 million euros),” said the Swiss bank, noting that the negative impact of this cause on the operating result of its investment banking business was 774 million dollars (641 million euros).

“We have exited all remaining exposures in April 2021,” added the entity, underlining that the related losses recognized in the second quarter of 2021 “are immaterial.”

“Our first quarter results were impacted by a loss related to a customer defaulting on main brokerage based in the US, ”said UBS CEO Ralph Hamers.

“We are all clearly disappointed. A detailed review of our relevant risk is being carried out and appropriate measures are being put in place to avoid such situations in the future ”, he added.

Turnover

In the first quarter of 2021, UBS’s turnover reached 8,705 million dollars (7,213 million euros), 9.7% above the revenues recorded a year earlier.

In this sense, the entity’s net interest income totaled 1,613 million dollars (1,336 million euros), 21.3% more than a year before, while net income from commissions increased by 13.3%, to 5,691 million dollars (4,714 million euros).

For its part, UBS’s CET1 top-quality capital ratio in the first quarter amounted to 14%, compared to 13.8% in the fourth quarter of 2020 and 12.8% in the first quarter of last year.