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UBS exceeds market expectations

May 2, 2012

Swiss banking giant UBS (market close on 30 April: -1.8%) this morning reported that Q1 net income fell 54% year-over-year to CHF827 m (hit by CHF1.16 bn in charges on its debt; Bloomberg analyst consensus: CHF810.9 m), but net new money at its wealth management unit more than doubled to CHF6.7 bn (median analyst estimate: CHF5.9 bn), while revenues in investment banking rose 41% to CHF396 m.

The group’s tier 1 ratio strengthened further to 18.7%. Although “progress on sustained and material improvements to Eurozone sovereign debt issues, concerns regarding the EU banking system and US federal budget deficit issues, as well as continued uncertainty about the global economic outlook in general, will likely have an influence on client activity levels in Q2,” the bank expects to attract net new money.