UBS (NYSE:UBS) reported a 52% annual drop in net profit on Tuesday amid a legacy litigation matter, but maintained it is a “source of stability” for its clients during periods of high uncertainty.
These are the bank’s first results since announcing its takeover of rival Credit Suisse (NYSE:CS).
UBS said net profit came in at $1.03 billion for the first quarter, coming in well below analyst expectations of a net profit near $1.75 billion for the period, according to Refinitiv.
The hit in net income came from increased provisions of $665 million following a U.S. residential mortgage-backed securities litigation matter.
Speaking to the media Tuesday, UBS CEO Sergio Ermotti — who resumed his post on April 5 — said, “We are in advanced discussions. Hopefully we can close this 15-year old chapter very soon.”
Ermotti also described the latest results as “very solid.”
The lender also said that it attracted $28 billion in net new money in its global wealth management unit, of which $7 billion were registered in the last 10 days of March — after the announcement of its acquisition of Credit Suisse.
UBS shares have jumped more than 10% since the news that it was buying its embattled Swiss competitor last month. At the time, UBS said that the deal, brokered by Swiss regulators, would create a “leading global wealth manager” with more than $5 billion in total invested assets.
UBS shares ducked 33 cents, or 1.6%, to $20.23.
