You can’t have your cake and eat it too, the quarterly report of Swiss megabank UBS just confirmed.
UBS reported a 52% decline in net profit for the first quarter as the bank’s acquisition of local rival Credit Suisse got underway. On the flip side, the Swiss banking (and now undisputed) heavyweight picked up $28bn in new inflows as it attracted more wealthy clients.
UBS chief executive Sergio Ermotti, who was reappointed to steer the Credit Suisse buyout, said the earnings results were “very solid.” What’s more, he now expects the merger to be a source of stability for investors and to create a leading global wealth manager with over $5bn in invested assets.
Shares of UBS dropped 5% in the first hours of the regular European session on Tuesday. Prior to today’s drop, the stock was up 10% since UBS announced it is buying its lossmaking competitor in late March. The bank also repurchased $1.3bn worth of its own shares in the quarter.
