From the "worst first quarter in recent history," has spoken to UBS chief Sergio p. Ermotti recently. At an investors ' event on the 20th. In March, he warned explicitly against the weak results of its big Bank – and this is both in the asset management business at the investment Bank. Accordingly, the expectations to the result for today is extremely low.
And these low expectations could surpass the UBS now. The fact is that their shares were traded after the market opening by more than 2 percent in the Plus. Addressed, whether or not the UBS has just curbed the expectations a little, and then look better, defended Ermotti: "first of all, the Start of the year was extremely difficult." The stock market performance in December of the previous year, let only with the development in 1929 of the economy to compare – on the eve of the world crisis. The Figures are better than expected, according to Ermotti, especially to a certain normalisation of markets since the middle of March.
customers held dear cash
For banks is the market is bad when the people keep away from capital markets. As Ermotti said also to Bloomberg, customers are still extremely cautious: Worldwide, 32 percent of assets were held in cash, in Asia, 36 per cent. Only in the USA it looks a little better, since there are around 23 per cent of the assets.
compared to The same quarter of the previous year quarterly profits (before taxes) the UBS fell by 27 per cent to 1,141 billion dollars – unlike before, the big Bank has their results now in the U.S. currency. In Swiss francs, the pre-tax quarterly profit amounted to 1,136 billion. The result deteriorated in such a way, it was also due to the fact that it was a year ago, the exceptionally well – and not only at UBS.
The positive Surprise, compared to the expectations, especially on investment banking and the Corporate centre – this despite the fact that the profit decline of 64% in investment banking compared to the previous year is in any other area so marked. The loss in the Corporate Center was, however, pre-tax only on the $ 15 million, compared with $ 92 million in the previous year. The largest part of the changes in this area goes back to the purely accounting effects (Accounting Assymetries).
In your most important and largest business area of the international wealth management for the rich clientele, the UBS even the already low expectations. The pre-tax profit is here with 863 million dollars, 21 percent lower than in the same quarter of the previous year. For this purpose, the UBS chief explained: "We do not want to sell assets at any price, the long-term interest of our customers comes first for us." Also in the two other business units – the Swiss business, Personal & Corporate Banking and asset management for Institutional clients Asset Management showed the Bank a smaller profit than in the previous year.
Ermotti is not satisfied
"We also say that the absolute is a good result," said UBS chief Executive Sergio Ermotti to be Reached, "but it is, in view of the difficult market circumstances is a strong performance and in comparison to the competition pretty well." So he should appeal about the fact that UBS identifies in comparison to Credit Suisse, a significantly higher rate of return, as measured by the equity capital. How it goes with the results of the UBS and Credit Suisse – more, depends on the further course on world markets. UBS is optimistic in this respect, as you can see, given the business Mix and the positioning in the regions.
In the run-up to today's figures, presentation, observers have hopes of Sergio Ermotti more clarity to the rumours that the Asset Management business of UBS outsourced and with that, the German Bank that runs under the DWS brand, together. However, the UBS chief was this closed with: "We do not comment on such speculation," said Ermotti at the General press conference. After all, he made it clear that the division continued to fit well for UBS.
Created: 25.04.2019, 17:44 PM