Higher transaction income and steady loans at UBS’s wealth management unit in Asia led profit to double in the first quarter of 2020.
The Swiss wealth manager’s Asia business posted $398 million in profits – a $215 million increase – on the back of $795 million in revenue generated. The regional wealth unit accounted for nearly one-third of the global business’ nearly $1.22 billion in profits.
In addition to higher transnational income, the bank posted a 2 percent increase in loan volumes to $44 billion and mandate penetration reached 14 percent in Asia Pacific. Net new assets for the region also reached $1.5 billion.
Group Profits Surge
The broader UBS group posted a 40 percent surge in net income to reach $1.6 billion. In addition to global wealth management, pre-tax profits also increased for the investment bank ($709 million, up from $207 million) while the asset management unit saw a decline ($334 million, down from $387 million).
Despite the strong results, UBS is wary of the uncertainty from the ongoing coronavirus pandemic and its consequent economic fallout.
«Lower asset prices will reduce our recurring fee income, lower interest rates will present a headwind to net interest income, and client activity levels will likely decrease, affecting transaction-based income,» the bank said in a statement. «The continued disciplined execution of our strategic plans will help to mitigate this.»
