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UBS earnings q1 2021 

The emblem of Swiss banking big UBS engraved on the wall is seen on its headquarters on Could 8, 2019 in Zurich.

Fabrice Coffrini | AFP | Getty Pictures

LONDON — UBS reported on Tuesday web revenue of $1.8 billion for the primary quarter of 2021, because it revealed successful to earnings from the scandal involving Archegos Capital.

The Swiss financial institution stated revenues have been $774 million decrease on account of the default by the Archegos hedge fund, which collapsed final month after taking over an excessive amount of danger. The U.S.-based household workplace was a consumer of UBS’ prime brokerage enterprise.

UBS stated Tuesday it had exited all publicity to Archegos and any associated losses within the second quarter can be “immaterial” for the financial institution.

Quite a few banks have been affected by the scandal, together with Credit score Suisse, which reported final week a web loss for the quarter on the again of a 4.4 billion Swiss franc ($4.8 billion) hit from the collapse of the identical U.S. hedge fund.

“Our first quarter outcomes additionally factored in a loss associated to the default by a single US-based prime brokerage consumer. We’re all clearly disenchanted and are taking this very significantly,” Ralph Hamers, UBS’s CEO stated in an announcement, including {that a} detailed assessment of danger administration was underway.

UBS’ web revenue for the primary quarter marked a 14% improve from a yr earlier. Analysts had anticipated the determine to return in at $1.6 billion over the interval, in line with Refinitiv.

Going ahead, UBS stated that revenues within the second quarter will likely be affected by “seasonal elements,” similar to decrease consumer exercise in comparison with the primary three months of the yr. The Swiss financial institution expects a constructive impact from larger asset costs, however warned that there’s “continued uncertainty” in regards to the financial restoration, which may impression its subsequent earnings.

Different highlights for the quarter:

  • Working revenue hit $8.7 billion from $7.9 billion a yr in the past.
  • Working bills got here in at $6.4 billion from $5.9 billion a yr in the past.
  • CET 1 ratio, a measure of financial institution solvency, reached 14% versus 12.8% a yr in the past.

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