UBS Registers 8.1% QoQ Increase in Total Revenues for Q1 2023

UBS on Tuesday has published its financial results for the first quarter of 2023, showing that the Swiss bank generated USD 8.7 billion total revenue during the period, up 8.1% over the prior quarter. Compared to the last same period, however, the figure dropped 6.8%.

Operating profit before tax for the quarter came in at USD 1.5 billion, compared to that of Q4 2022 at USD 1.9 billion. And the Q1 2022 operating profit before tax was USD 2.7 billion. Net profit attributable to shareholders dipped from the previous quarter’s USD 1.7 billion to USD 1.0 billion.

The quarterly credit loss expense reached USD 38 million, while the figure for Q4 2022 and Q1 2022 were USD 7 million and USD 18 million, respectively. Operating expenses rose 18.5% QoQ to USD 7.2 billion.

Return on equity declined from the previous quarter’s 11.7% to 7.2%, with return on common equity tier 1 (CET1) capital down from 14.7% to 9.1%. CET1 capital ratio dropped slightly to 13.9%, and cost/income ratio rose from 75.8% to 82.5%.

The bank ended the quarter with USD 1.053 trillion total assets, compared to Q4 2022’s USD 1.104 trillion. Diluted earnings per share was USD 0.32, compared to Q4 2022’s USD 0.50 and the last same period’s USD 0.61.

“Our solid underlying performance and strong inflows this quarter demonstrate that we continue to be a source of stability for our clients during periods of significant uncertainty,” said Sergio P. Ermotti, Group CEO. “Our balance sheet for all seasons and a diversified and capital-generative business model allowed us to be part of the solution in a critical moment for the Swiss and global financial system.”

Last week, Fazzaco reported that the Federal Reserve's Board of Governors has approved UBS's acquisition of the U.S. subsidiaries of Credit Suisse​, clearing another major hurdle for the completion of the Swiss-brokered rescue deal.