UBS posts 40% Q1 profit rise on higher trading activity amid market turmoil

[ZURICH] The world's largest wealth manager, UBS, reported a 40 per cent increase in first-quarter net profit on Tuesday, as clients upped trading activity during market turmoil sparked by the coronavirus outbreak and as it extended more loans to its wealthy clients.

The bank had previously said it expected to report first-quarter net profit of around US$1.5 billion (S$2.1 billion), with strong operating performance across all its business divisions, even after accounting for the risk of higher defaults as a result of the virus. It reported net profit of US$1.595 billion on Tuesday.

"Looking ahead, the range of possible outcomes remains very wide, and it is too early to make reliable predictions about the timing and shape of any potential economic recovery," Switzerland's largest lender said in a statement. "The continued disciplined execution of our strategic plans will help to mitigate this."

REUTERS