[ad_1]
UBS earnings shrank 52% over the previous 12 months and it misplaced 98 web advisors over the previous quarter, the agency disclosed in its first-quarter earnings Tuesday — reflecting challenges the financial institution will face because it seeks to proceed rising its wealth unit in a rocky market surroundings whereas taking on Credit score Suisse.
The Swiss wirehouse missed Wall Avenue analyst expectations with diluted earnings per share of $0.32, which was 41% beneath the analyst consensus of $0.54. The inventory was down 5% as of market shut Tuesday.
Larger bills and lowered revenues from “unfavorable market efficiency and decrease ranges of consumer exercise” contributed to its disappointing outcomes, UBS mentioned in its earnings report Tuesday. The financial institution minimized its advisor headcount dip, largely within the Americas, as reflecting attrition amongst these dealing with decrease consumer accounts.
The corporate additionally reported features in consumer property, reflecting “how purchasers flip to us as they seek for stability,” UBS CEO Sergio Ermotti mentioned in an earnings name Tuesday with analysts.
“Internet new cash in GWM [Global Wealth Management] was $28 billion. Importantly, $7 billion of this got here within the 10 enterprise days after the acquisition announcement,” Ermotti mentioned, including that though “our wealth administration purchasers stay on the sidelines,” advisors had succeeded in persevering with to have interaction them.
“What’s necessary is deposit shift into cash market and T-bills remained with UBS, and we additionally noticed $9 billion in new deposits into our platform.”
The GWM unit added $19.7 billion of web new fee-generating property, and the Americas arm of GWM added $3.8 billion of that.
“US wealth inflows confirmed a slowing tempo of web new price producing property in 1Q — $3.8 billion vs 4.2 billion in 4Q,” Alison Williams, an analyst at Bloomberg Intelligence, mentioned in an e-mail Tuesday.
“Total the online curiosity earnings outlook for the worldwide wealth unit is extra unfavorable as we see deposit outflows and cash market inflows — just like what we noticed at Morgan Stanley,” Williams mentioned.
To see the principle takeaways from UBS’s first-quarter earnings, scroll down the slideshow. For protection of the agency’s fourth-quarter earnings, click on right here. For a take a look at the outcomes from the third quarter, click on right here.
[ad_2]
Source link