UBS delivered a very strong first-quarter result overnight, comfortably beating expectations with earnings momentum driven by huge beats in trading revenue after a volatile period, and momentum in the Wealth Management franchise. Shares traded up ~1.5%.
1Q Highlights
- Revenue US$14.24bn (+13% y/y) vs $13.2bn consensus
- Trading Revenue US$4.1bn (+27% y/y)
- Net income US$3.04bn (+80% y/y) vs US$2.57bn consensus
- Wealth Management net new assets US$37.4bn vs US$24.9bn consensus
The Credit Suisse integration continues to generate meaningful cost synergies, with cumulative savings now reaching US$11.5bn, helping ease some concerns around Swiss regulatory capital requirements. For now, strong earnings momentum, healthy client inflows and ongoing buybacks are supporting our investment case – overall, this was a high-quality result.
MM remains long and bullish UBS
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