The largest fund in the world, UBS, published its financial statements for the first quarter. The fund reported up to a 40% increase in net income as clients increased business activity during market shocks triggered by a coronavirus outbreak when they provided additional loans to their wealthy clients.
“Looking to the future, the range of possible outcomes is still very wide and it is too early to make reliable predictions about the timing and form of a possible economic recovery,” Switzerland’s largest lender said in a statement.
Net income was $ 1.595 billion and $ 268 million in credit loss expenses, stating that it was primarily exposed to loans related to its asset management clients and in Switzerland. The bank has previously predicted a net profit of $ 1.5 billion with strong operating performance in all of its business divisions, despite taking into account the virus and its consequences of the risk of higher default values. Investment assets gradually declined to $ 2.339 trillion due to declining asset valuations, while revenues increased across all major lines, helping to increase operating income by 14%.
By comparison, Credit Suisse’s biggest rival has reported a sevenfold increase in loan loss provisions as lenders around the world mention growing failures due to the virus.
Disclaimer: The content of the Reports constitutes Marketing Communication and does not constitute Investment Advice or Investment Research or an offer for any transactions in financial instrument. The content of the Reports represents the view of our experts on a generic basis, and does not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the Reports have not been prepared in accordance with legal requirements designed to promote the independence of Investment Research, and are not subject to any prohibition on dealing ahead of the dissemination of Investment Research. Readers using the Reports should consider the possibility of encountering substantial losses. The past performance is not a guarantee of future results. Therefore, Goldenburg Group Limited shall not accept any responsibility for any losses of traders due to the use and the content of its Reports.