UBS profits, advisors drop as Credit Suisse takeover begins

Financial Advisors

UBS’s profits have fallen 52% over the past year, losing 98 online advisers in the last quarter, the company said in its first-quarter results on the environment Acquisition of Credit Suisse.

The Swiss telecom company underperformed Wall Street analyst expectations with diluted earnings per share of $0.32, 41% below analysts’ expectations. Consensus at $0.54. of stock price fell 5% As of Tuesday’s market close.

UBS said higher costs and lower revenues due to “negative market performance and low levels of client activity” led to disappointing results. earnings report Tuesday. Banks have minimized advisor headcount reductions, mainly in the Americas, reflecting a reduction in the number of people handling lower customer accounts.

UBS Chief Executive Sergio Ermotti said in an earnings call with analysts on Tuesday that client assets increased, reflecting “the way clients turn to us for stability.”

“GWM net new money [Global Wealth Management] It was $28 billion. Importantly, of this, he got $7 billion in 10 business days after the acquisition announcement,” Ermotti said, adding, “Our wealth management client remains on the sidelines. ‘ but added that the adviser was successful in remaining engaged.

“The important thing is that deposits moved to the money market and T-bill remained at UBS. We also saw $9 billion in new deposits on the platform.”

The GWM division added $19.7 billion of new fee-generating assets, of which GWM’s Americas division added $3.8 billion.

“U.S. wealth inflows showed a slowing pace of net new fee-generating assets in the first quarter to $4.2 billion in the fourth quarter,” Bloomberg Intelligence analyst Allison Williams said in an email Tuesday. was $3.8 billion against

“The overall net interest income outlook for the Global Wealth Unit is more negative as we see deposit outflows and money market inflows, similar to what we have seen at Morgan Stanley,” Williams said. rice field.

Scroll down the slideshow to see the key takeaways from UBS’s first quarter earnings. For the company’s fourth quarter earnings, click hereLooking at the third quarter results, click here.

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