UBS Group AG (UBS) reported first-quarter 2015 net profit attributable to shareholders of CHF 1.98 billion ($2.08 billion), soaring a whopping 88% year over year. The results were driven by elevated net interest income (up 4% year over year), increased net trading income (up 57% year over year) and higher net fee and commission income (up 7% year over year) as well.
UBS Group AG experienced own credit gain on financial liabilities of CHF 226 million ($237.5 million) as against a gain of CHF 88 million ($92.4 million) in the prior-year quarter. Further, the company recorded net restructuring charges of CHF 305 million ($320.5 million) in the reported quarter, up 49.5% year over year.
Also, the company’s results included gains on sales of real estate of CHF 378 million ($397.2 million) and a gain of CHF 141 million ($148.2 million) on the sale of a subsidiary. Further, provisions for litigation, regulatory and similar matters of CHF 58 million ($60.9 million) were recorded, up 70% from the prior-year quarter.
Quarter in Detail
UBS Group AG’s adjusted operating income increased 13.3% from the prior-year quarter to CHF 8.10 billion ($8.51 billion). Adjusted operating expenses were up 3% year over year to CHF 5.83 billion ($6.13 billion). The rise reflected elevated general and administrative expenses and personnel expenses
UBS Group AG’s pre-tax operating profit on an adjusted basis came in at CHF 2.27 billion ($2.34 billion) in the quarter, up 52.6% year over year.
The Wealth Management division generated adjusted operating profit before tax of CHF 856 million ($899.5 million) in the quarter, up 30% year over year. Notably, the quarter marked the ‘best quarterly result’ for this division since 2008. Wealth Management Americas division’s adjusted operating profit before tax came in at CHF 277 million ($291.1 million), up 9.9% from the prior-year quarter.
Retail & Corporate division’s adjusted operating profit before tax was CHF 443 million ($465.5 million), up 10.5% year over year. The Global Asset Management unit’s adjusted operating profit before tax jumped 47.6% year over year to CHF186 million ($195.4 million) in the quarter. Also, Investment Bank unit’s adjusted operating profit before tax came in at CHF 844 million ($886.9 million) in the quarter, up 53.7% year over year.
However, Corporate Center reported adjusted operating loss before tax of CHF 340 million ($357.2 million) compared with a loss of CHF 501 million ($526.5 million).
