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UBS Q1 net profit rises to record 3.5 bln francs

By Staff
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ZURICH, May 4 (Reuters) UBS, the world's largest wealth manager, reported a first-quarter net profit of 3.50 billion Swiss francs ( ZURICH, May 4 (Reuters) UBS, the world's largest wealth manager, reported a first-quarter net profit of 3.50 billion Swiss francs ($2.83 billion) on Thursday, beating analysts' expectations in the bank's best-ever quarterly performance.

The net profit, which included a 290 million franc capital gain from the sale of a power generation subsidiary, Motor-Columbus, was up from 2.63 billion francs a year ago.

It compared with a median forecast of 3.0 billion francs in a Reuters poll of 19 analysts.

The Swiss bank's wealth management business had a record-beating performance, attracting a net inflow of 33.6 billion francs, far ahead of a median forecast of 22.1 billion.

UBS reported a return on equity of 30.6 percent in the first quarter and said it would aim for ROE for the whole year of at least 20 percent.

It was the latest in a series of strong results from European investment banks such as Credit Suisse and Deutsche Bank, which have reported rising income from trading stocks and bonds, advising clients on mergers and acquisitions, and managing a fast-growing pool of money for the world's wealthy.

UBS, in particular, is reaping the rewards of concentrating most of its firepower on investment banking and wealth management while operating a retail business only in its home Swiss market.

UBS is Europe's second-largest bank with a market value of $126.6 billion. Its return on equity is about three times the sector average in Europe, according to Reuters data.

REUTERS CS DS1112 .83 billion) on Thursday, beating analysts' expectations in the bank's best-ever quarterly performance.

The net profit, which included a 290 million franc capital gain from the sale of a power generation subsidiary, Motor-Columbus, was up from 2.63 billion francs a year ago.

It compared with a median forecast of 3.0 billion francs in a Reuters poll of 19 analysts.

The Swiss bank's wealth management business had a record-beating performance, attracting a net inflow of 33.6 billion francs, far ahead of a median forecast of 22.1 billion.

UBS reported a return on equity of 30.6 percent in the first quarter and said it would aim for ROE for the whole year of at least 20 percent.

It was the latest in a series of strong results from European investment banks such as Credit Suisse and Deutsche Bank, which have reported rising income from trading stocks and bonds, advising clients on mergers and acquisitions, and managing a fast-growing pool of money for the world's wealthy.

UBS, in particular, is reaping the rewards of concentrating most of its firepower on investment banking and wealth management while operating a retail business only in its home Swiss market.

UBS is Europe's second-largest bank with a market value of 6.6 billion. Its return on equity is about three times the sector average in Europe, according to Reuters data.

REUTERS CS DS1112

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