Swiss banking giant UBS reports a 40% increase in profits, and lauds its own strength in 'turbulent times'

• Swiss banking giant UBS reported a strong first-quarter with net profits rising 40% compared to the same period last year, driven by high transaction volumes in the midst of market volatility.
• "As a result of years of disciplined strategic execution, risk management and sustained technology investments, we enter these turbulent times from a position of strength," CEO Sergio Ermotti said,
• The bank's revenue rose 44% in its global markets division as market volatility caused by the coronavirus increased trading activity.
• Visit Business Insider's homepage for more stories.

Swiss banking giant UBS posted a rise of 40% in net profits in the first-quarter of 2020, reflecting in part increased client activity during the nascent stages of the coronavirus pandemic.

The bank, known for catering to wealthy clients, reported a net profit of $1.6 billion in the quarter ended March 2020, up some 40% compared to the same period last year, and said it was able to support clients with "advice, credit and liquidity at the time they need it the most."

The Swiss bank's optimistic results come at a time when the coronavirus pandemic has halted businesses around the world and put pressure on banks as customers have reduced non-essential transactions.

Here are some key metrics versus Bloomberg estimates:

• Adjusted earnings per share: $0.53 per share versus $0.40 expected.
• Net income: $1.6 billion versus $1.1 billion expected.
• Pre-tax profit: $2 billion versus $1.8 billion.

"As a result of years of disciplined strategic execution, risk management and sustained technology investments, we enter these turbulent times from a position of strength," said CEO Sergio Ermotti in a statement.

Read More: GOLDMAN SACHS: These are the top 11 companies to watch as we enter the best stock-picking environment in over a decade

Ermotti said in a video interview that the bank's challenges going forward would include staying relevant and keeping in touch with clients regardless of whether they are private, institutional or corporate clients.

"It's only one quarter and we need to focus on maintaining the momentum," Ermotti said of the bank's well-placed current position.

Owing to "significantly higher volumes and volatility," revenue from global markets rose 44% in the bank's global markets division.

"Looking ahead, the range of possible outcomes remains very wide, and it is too early to make reliable predictions about the timing and shape of any potential economic recovery," the bank said in a statement.

UBS announced in February that Ralph Hamers, current CEO of ING Group, will take over as chief executive effective November 1, 2020.

Read More: Goldman Sachs outlines a 3-part investing strategy to profit from the economy's reopening — including 4 stocks to buy for the recovery

Other key metrics:

• Common Equity Tier 1 Ration (CET1) — a core measure of financial strength — stood at 12.8% versus 13.7% last year.
• Credit loss expenses totaled $268 million.
• Cost-to-income — an efficiency ratio — was up at 72.3%, a 6 percentage point improvement from last year.

UBS' share price has dropped nearly 30% in the last year. Shares rose 4.2% on Tuesday in early pre-market trading.

Read the original article on Business Insider