UBSG: UBS Stock Rises 8% on Surprise $1.8 Billion Profit After Two Losing Quarters

Credit Suisse integration has cooled down and isn’t that much of a weight on the Swiss giant’s expenses.

• UBS stock UBSG soared 8% almost out of the gate Tuesday after the white-glove wealth manager posted a surprise profit for the first quarter. The Swiss banking giant picked up $1.8 billion in net profit, up from a $279 million loss in the previous quarter and above the $602 million expected. It was the first profitable trimester out of the last three. And investors liked it. Shares on the Swiss stock exchange nearly hit CHF 27.00 in early trading today.
• The lender’s wealth management division attracted $27 billion in net new assets in a huge sign of confidence from the upper echelon of the rich. More importantly, UBS has mostly digested the acquisition of fallen rival Credit Suisse. Lowering expenses from this yearlong process have helped boost the bottom line. Revenue for the firm amounted to $12.74 billion, topping the fourth-quarter’s $10.86 billion.
• ”This quarter marks the return to reported net profits and further capital accretion — a testament to the strength of our business and client franchises and our ability to deliver significant progress on our integration plans while actively optimizing our financial resources,” said chief executive Sergio Ermotti.