Finance Broadcast

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Walmart Is Trying To Set Up Clinics Of Corona Vaccines For The Workers Of Flipkart While India Is Fighting Against The Second Wave Of The Covid-19 Crisis

    May 3, 2021

    Why Is The Company Amazon An Excellent Profit-Making Machine?

    May 3, 2021

    Biden Fails To Attract A Live TV Audience

    May 1, 2021
    Facebook Twitter Instagram
    Facebook Twitter Instagram
    Finance BroadcastFinance Broadcast
    Subscribe
    • Home
    • News
    • Business
    • Sports
    Finance Broadcast
    Home » UBS Reports Q1 Net Income At $1.8 Billion After Taking Archegos Hit
    News

    UBS Reports Q1 Net Income At $1.8 Billion After Taking Archegos Hit

    AdminBy AdminApril 28, 2021Updated:April 28, 2021No Comments4 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
    UBS Reports Q1 Net Income At $1.8 Billion After Taking Archegos Hit
    Share
    Facebook Twitter LinkedIn Pinterest Email

    UBS reported Tuesday a Q1 2021 net income at $1.8 billion, as it revealed its earnings had taken a hit from the scandal involving Archegos Capital. UBS shares were down 2% in early European trading hours, CNN reported.

    UBS Reports Q1 Net Income At $1.8 Billion After Taking Archegos Hit

    According to the Swiss bank, revenues were $774 million lower due to  the Archegos hedge fund default, which last month, collapsed due to the high risk it took on. The family office based in the U.S. had been a client of the Swiss lender’s prime brokerage business.

    UBS Reports Q1 Net Income At $1.8 Billion After Taking Archegos Hit

    The lender announced that it had fully exited Archegos exposure and related losses if any in Q2 would be immaterial.   

    The scandal had affected several banks, with Credit Suisse, taking a 4.4 billion Swiss franc ($4.8 billion) hit. Credit Suisse reported a net loss for the quarter.

    UBS CEO Ralph Hamers who spoke to Joumanna Bercetche of CNBC on Tuesday said the hit had left the bank very disappointed.

    He added the lender was taking it very seriously and had initiated a detailed review of the relationships it had with different prime brokers, the family offices’ relationships that it had, as also, the risk management processes it had, so as to really get the lessons learned and ensure their implementation so that going forward it did not happen again.

    According to Hamers, the prime brokerage business being strategic its capabilities supported the wider business, UBS however, needed to learn from the Archegos fiasco.

    UBS’ first quarter net income was up 14% from a year earlier. According to Refinitiv, analysts had expected the figure at $1.6 billion for the period.

    Other Q1 2021 highlights:

    Operating income was up at $8.7 billion as against the year ago’s $7.9 billion.

    Operating expenses stood at $6.4 billion as against the year ago’s $5.9 billion.

    CET 1 ratio, stood at 14% versus the year ago’s 12.8%. The ratio measures bank solvency.

    According to Hamers, client activity at the bank had been high in the quarter.   

    He told CNBC that performance had been really strong across asset management, wealth management, the investment bank and also the activities in Switzerland.

    He added from that perspective it was actually a  real, strong  and  well balanced quarter  if it were not for the loss it had  taken, but even with the loss, it had performed at a return of 18.2% on CET1, which was a really good result.

    According to UBS, going forward Q2 revenues would be affected by  seasonal factors, including lower client activity as against the first quarter. The Swiss bank expected that higher asset prices would have a positive effect, but warned of continued uncertainty about the economic recovery, possibly impacting its next earnings.

    Hamers added that all needed to be aware of a lot of market optimism  and clearly there  was also much good news that had come to the market, but he would also need  to look at some of the challenges that the bank saw. He said would the pandemic be over, that  was the question. Would vaccination continue the way it was and how the economy would truly recover, Hamers said.

    In a separate report CNBC said shares of HSBC jumped 2% following Europe’s largest lender by assets reporting Q1 pre-tax profit beating estimates but also reporting revenue was down.

    Hong Kong-listed HSBC shares traded 0.44% up, ahead of the earnings release.

    According to the London-headquartered bank which made most of its revenue in  Asia, its  reported profit before tax  was  up 79% from a year ago at $5.8 billion for the three months ending 31 March. According to estimates compiled by HSBC, it had beaten analysts  expectations of $3.346 billion.

    Featured
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleStock Futures Flat With A Big Earnings Week Ahead
    Next Article Stronger Commodity Prices Help BP To Beat Q1 Estimates
    Admin
    • Website

    Related Posts

    Walmart Is Trying To Set Up Clinics Of Corona Vaccines For The Workers Of Flipkart While India Is Fighting Against The Second Wave Of The Covid-19 Crisis

    May 3, 2021

    Why Is The Company Amazon An Excellent Profit-Making Machine?

    May 3, 2021

    Biden Fails To Attract A Live TV Audience

    May 1, 2021
    Add A Comment

    Leave A Reply Cancel Reply

    Don't Miss

    Walmart Is Trying To Set Up Clinics Of Corona Vaccines For The Workers Of Flipkart While India Is Fighting Against The Second Wave Of The Covid-19 Crisis

    News May 3, 2021

    Walmart is trying its best to set up clinics and dispensaries for workers of more…

    Why Is The Company Amazon An Excellent Profit-Making Machine?

    May 3, 2021

    Biden Fails To Attract A Live TV Audience

    May 1, 2021

    GDP rises 6.4% on consumer spending in Q1

    May 1, 2021
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Our Picks

    Walmart Is Trying To Set Up Clinics Of Corona Vaccines For The Workers Of Flipkart While India Is Fighting Against The Second Wave Of The Covid-19 Crisis

    May 3, 2021

    Why Is The Company Amazon An Excellent Profit-Making Machine?

    May 3, 2021

    Biden Fails To Attract A Live TV Audience

    May 1, 2021

    GDP rises 6.4% on consumer spending in Q1

    May 1, 2021

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    Demo

    Finance Broadcast, the trusted business, and financial news website delivering news on the market and economy.

    Email Us: [email protected]
    Contact: +1-111-0111-111

    TOP NEWS
    Walmart Is Trying To Set Up Clinics Of Corona Vaccines For The Workers Of Flipkart While India Is Fighting Against The Second Wave Of The Covid-19 Crisis
    May 3, 2021
    Why Is The Company Amazon An Excellent Profit-Making Machine?
    May 3, 2021
    1 2 3 … 79 Next
    Recent Post
    • Walmart Is Trying To Set Up Clinics Of Corona Vaccines For The Workers Of Flipkart While India Is Fighting Against The Second Wave Of The Covid-19 Crisis May 3, 2021
    • Why Is The Company Amazon An Excellent Profit-Making Machine? May 3, 2021
    • Biden Fails To Attract A Live TV Audience May 1, 2021
    • GDP rises 6.4% on consumer spending in Q1 May 1, 2021
    • Royal Dutch Shell Reports Better-Than-Expected Q1 Earnings April 30, 2021
    © 2023 | All right reserved. Digitally powered by financebroadcast.com.
    • Home
    • Lifestyle
    • Computing

    Type above and press Enter to search. Press Esc to cancel.