Proactive Investors - UBS (NYSE:UBS) crushed estimates for first-quarter earnings with the Swiss bank posting a first profit in the period since its shotgun marriage to beleaguered rival Credit Suisse (SIX:CSGN).
Net income of US$1.8 billion was almost three times higher than expected and driven by a surge of money into its wealth management arm, where new net assets jumped to US$27 billion.
Shares in the bank opened 6% higher even though it warned lending and deposit volumes coupled with lower interest might slow progress in wealth management.
"In the second quarter of 2024, we expect a low-to-mid single-digit decline in net interest income in Global Wealth Management," the bank said in a statement.
Analysts cited reduced costs and better-than-expected performances from the parts inherited from Credit Suisse as reasons for the strong numbers.
UBS has said it is keen to sell much of the Credit Suisse business.
Cost savings were US$1 billion higher than expected with US$ $5 billion shaved off overheads since the merger and a further US$1.5 billion of savings pencilled in for the remainder of this year.
Shares in UBS have climbed 40% over the past year helped by the promise to buy back US$1 billion worth of shares, which it reiterated today.