UBS keeps costs under control, CET1 stays 14%
Staff writer ▼ | May 3, 2016
In the first quarter of 2016, UBS delivered an adjusted profit before tax of CHF 1,366 million, with positive contributions from all business divisions and regions.Article continues below
Net profit attributable to UBS Group AG shareholders was CHF 707 million, with diluted earnings per share of CHF 0.18. Group annualized adjusted return on tangible equity was 8.5%.
UBS's combined wealth management businesses attracted strong net new money totaling CHF 29 billion, the highest since 2008.
These net inflows were achieved while staying focused on delivering sustainable profitability. Personal & Corporate Banking saw very strong net new business volume growth in personal banking at almost 5.0%, and attracted record net new domestic clients for a first quarter.
UBS maintained its strong capital position, with a fully applied CET1 capital ratio of 14%, and a fully applied Swiss SRB leverage ratio of 5.4%.
In March, UBS successfully issued CHF 1.4 billion of AT1 contingent capital, the first such offering across the industry in 2016, and CHF 1.3 billion of TLAC-eligible bonds.
UBS remains well positioned to meet the proposed new requirements for Swiss systemically relevant banks. As of March 2016, the group achieved CHF 1.2 billion of total cost savings compared with full-year 2013, and is on course to achieve its target of CHF 2.1 billion net cost reductions by year-end 2017.
In addition, UBS continues to take responsible measures to save costs across the firm in light of the current challenging revenue environment.
As previously announced, UBS board proposed to shareholders to pay an ordinary dividend of CHF 0.60 per share, as well as a special dividend of CHF 0.25 per share, for the year 2015. ■ What to read next
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