UBS beats expectations for the first quarter; continues to reduce Russia exposure

UBS has beat expectations for the first quarter of 2022 and said it has further reduced its exposure to Russia.

The Swiss bank on Tuesday reported net profit attributable to shareholders of $2.136 billion, above forecasts compiled by the bank of $1.79 billion.

It marks a 17% rise from the $1.82 reported for the same period of 2021 and follows a drop in quarterly net profit to $1.35 billion at the end of the year.

The bank has previously described its market risk exposure to Russia as “limited” and on Tuesday said it had reduced its exposure to $0.4 billion as of March 31, compared with $0.6 billion at the end of 2021.

In addition, it said it had no material exposure to Ukraine or Belarus, and that it is not conducting any new business in Russia or with Russia-based clients.

“Macroeconomic, geopolitical and market factors created a high level of uncertainty in the first quarter, with Russia’s invasion of Ukraine, COVID-related restrictions and lockdowns, higher volatility, the lower economic growth outlook, and concerns about higher inflation and the monetary policy response,” the bank said in a release Tuesday.

Here are some other key metrics for the quarter:

• Operating income came in at $9.36 billion, versus $8.71 billion a year ago.
• Return on tangible equity, a measure of profitability, stood at 16%, up from 14% a year ago.
• CET 1 ratio, a measure of bank solvency, was 14.3%, versus 15% at the end of 2021.

The company’s stock is flat for the year so far.

—This is a breaking news story and it is being updated.