UBS Q1 Profit Tops Forecasts

Source Credit : Reuters

On Wednesday, UBS reported first-quarter net profit that exceeded expectations. However, the Swiss bank cautioned about an uncertain outlook due to U.S. tariffs causing fears of global growth. Despite market tumult, trading activity drove up earnings.

Switzerland's largest bank announced a net profit attributable to shareholders of $1.7 billion in the first quarter of 2025. This figure represents a slight decrease from the $1.8 billion reported in the same period the previous year. However, the bank exceeded the average estimate of $1.3 billion in a poll of analysts conducted by the company.

The outlook appeared subdued due to the uncertainty created by U.S. President Donald Trump's extensive tariffs. The potential for increased tariffs on global trade poses a significant risk to global growth and inflation, which in turn complicates the interest rate forecast, according to UBS.

UBS anticipates a slight decrease in net interest income within its global wealth management business for the second quarter of 2025, as well as a similar decline in its Swiss operations. The bank also noted that ongoing market volatility may potentially result in delays for corporate transactions.

UBS has stated that the economic future is highly uncertain, with a multitude of potential outcomes. This unpredictability may lead to increased market volatility, causing investors to delay making decisions regarding their investment strategies and capital allocation.

President Trump's global trade war has caused chaos in financial markets and sparked concerns of a potential recession. This has put various industries, including manufacturing, retail, and banking, at risk of significant disruption.