UBS released first quarter 2017 results 

The Swiss global financial services company UBS AG has issued today a press release to announce its its results for the first-quarter 2017.

According to the announcement, UBS published the below results:

• Adjusted¹ profit before tax CHF 1.9bn, up 42% YoY, with all business divisions up
• Adjusted1 return on tangible equity 12.6%, 17.4% excluding DTA²; diluted EPS CHF 0.33
• Fully applied CET¹ capital ratio 14.1% and leverage ratio 3.55%
• Total loss-absorbing capacity CHF 74bn
• CHF 1.1bn combined adjusted¹ profit before tax in global wealth management
• Investment Bank 24% annualized adjusted¹ return on attributed equity
• Sustainable investing funds for gender diversity and renewable energy launched

UBS delivered very strong first-quarter results with an adjusted1 profit before tax of CHF 1,934m, up 42% year on year. Adjusted¹ operating income increased 8%, driven by the Investment Bank, Wealth Management Americas and Wealth Management, and the firm continued to make progress on its net cost reduction program. Despite facing a variety of market conditions and client activity levels, all business divisions and regions contributed to the improvement in performance. Reported pre-tax profit was up 73% year on year to CHF 1,690m. Net profit attributable to shareholders was CHF 1,269m, up 79% year on year, with diluted earnings per share of CHF 0.33. Group annualized adjusted1 return on tangible equity was 12.6%, or 17.4% excluding DTA.²

On a fully applied basis, UBS’s capital position remains strong, with a CET¹ capital ratio of 14.1%, a CET¹ leverage ratio of 3.55% and total loss-absorbing capacity increased to CHF 74bn.

Outlook

Improved investor sentiment and enhanced confidence have not yet fully translated into a sustained increase in client activity levels. While the global recovery is likely to continue, macroeconomic uncertainty, geopolitical tensions and divisive politics pose risks that may affect client sentiment and transaction volumes. Low and negative interest rates, particularly in Switzerland and the eurozone, continue to present headwinds to net interest margins. These may be partially offset by the effect of higher US dollar interest rates and a further normalization of monetary policy. Implementing Switzerland’s new bank capital standards and the proposed further changes to the international regulatory framework for banks will result in increased capital requirements, interest and operating costs. UBS is well positioned to mitigate these challenges and benefit from further improvements in market conditions

“Our very strong results in the first quarter highlight the power and potential of our franchise. We will continue to manage our business with discipline, focusing on sustainable performance and long-term growth.” Sergio P. Ermotti, Group Chief Executive Officer

¹ Refer to the “Adjusted results“ paragraph at the end of this news release.
² Excludes any net deferred tax expense / benefit from net profit attributable to shareholders and excludes any deferred tax assets that do not qualify as CET1 capital from tangible equity.

For the Full results report click HERE

Source: UBS – UBS’s first-quarter 2017 results

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