The bank booked a net profit of US$1.6 billion (S$2.3 billion), slightly ahead of its previous guidance of around US$1.5 billion. It reported strong operating performance across all business divisions, even after accounting for the risk of increased defaults resulting from the pandemic.
"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," Switzerland's largest lender said in a statement.
"The continued disciplined execution of our strategic plans will help to mitigate this."
UBS recorded US$268 million (S$380 million) in credit loss expenses for the quarter, saying it was primarily exposed to credit related to wealth management clients and within Switzerland, noting its credit book was "of high quality".
Its cross-town rival Credit Suisse last Thursday posted a sevenfold increase in credit loss provisions, as lenders globally brace themselves for rising defaults due to the virus.
UBS' core business managing money for the world's wealthy saw invested assets decline sequentially to US$2.339 trillion on the back of falling asset valuations, while revenue grew across all main lines, helping operating income rise 14 per cent.
The resilient performance by UBS' wealth management business puts it on a firmer footing going into the crisis compared with rivals more focused on corporate and retail banking. HSBC and Santander both reported sharp falls in first-quarter profit yesterday, and set aside billions in expected loan loss provisions.
UBS' investment bank more than tripled pre-tax earnings compared to a tough start last year, while its asset management increased earnings by 52 per cent. Its Swiss retail and corporate business took a 16 per cent hit on the back of lower expected recovery from loans to credit-impaired corporate counterparties.
In investment banking, its global markets revenue jumped 44 per cent, with earnings from foreign exchange, rates and credit trading doubling while equities were up 18 per cent.
UBS in January presented a revamped vision for its flagship wealth business, seeking to boost lending and extend more complex financing to wealthy clients, as well as increasing access to private and capital markets through stepped-up collaboration between private banking, asset management and its investment bank.
The coronavirus outbreak has stymied some of the businesses in which UBS is hoping to increase its wealth foothold, as deal-making and initial public offerings ground to a halt during the quarter, and as a worldwide market rout triggered margin calls which prompted some wealth managers to rein in leverage extended to rich clients.
UBS' results, however, pointed to resilience in wealth management, as pre-tax profit grew 41 per cent and as it brought in a net US$12 billion in fresh client inflows and US$3.9 billion in net new loans.
The bank recorded a US$53 million credit loss expense across the loans it extends to wealthy individuals - where the bank has previously pointed to conservative risk management - or 0.03 per cent of its wealth management lending book, and a low level of margin calls.
In the Asia-Pacific region, UBS' wealth business recorded its highest pre-tax profit on record, as transaction income jumped 93 per cent.
The 2020 Wealth Management in Vietnam Report
The Dragon Banker’s The 2020 Wealth Management in Vietnam Report is the most authoritative and detailed report on the current state and the future of Vietnam’s growing wealth management industry.
The report looks at the great potential of the market and the range of opportunities as the economy and private wealth continues to accelerate. It looks into the number of people who are considered affluent, HNWI and HNWI and evaluates into their asset allocation strategy.
The report also looks into the rising wealth management operations that are occurring in Vietnam along with the rise of client’s interest and knowledge. Product and service range are expanding, both for onshore and offshore. And foreign competition is rapidly increasing to help domestic clients in investing overseas, across Asia and the globe.
Table of contents
1. About The Dragon Banker
2. Forward & Introduction
3. The Dragon Banker Methodology
4. The HNWI Opportunities in Vietnam
5. Regulatory framework across Vietnam’s wealth management industry
6. The Psychological and Behavioural Make up of Vietnam’s HNWI individuals
7. The Current State of the Wealth Management Market in Vietnam
8. Volume, Wealth and Allocation Forecasts to 2024
9. Independent market sizing of Vietnam’s HNWI
10. Vietnam’s Affluent Class: People With Assets of $100,000 And $1 Million
11. Vietnam’s HNWIs: Asset allocation, growth trends and investment preferences
12. Current insights into the Drivers of HNWI Wealth
13. Current Competition Amongst Banks for HNWI Clients and SWOT
- Standard Chartered
- Saigon Asset Management
- The State Bank of Vietnam
- Joint Stock Commercial Bank for Investment and Development of Vietnam
- Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank)
- Tien Phong Commercial Joint Stock Bank,
- Mirae Asset Wealth Management Securities
- Manulife Asset Management
- Other Key players
14. Summary and Final Analysis
15. How to Leverage The Dragon Banker for IT firms & Financial Institutions
For more information, please contact Blake King-Blake.firstname.lastname@example.org
The 2020 Wealth Management in Oman Report
The Dragon Banker’s 2020 Wealth Management in Oman Report is the most authoritative intelligence on the wealth management industry in Oman.
Private wealth has seen significant growth in the last few years across Oman, as domestic and UEA banks are targeting the rising wealthy population that consists of not only native Oman populations but also other wealthy Arab and African populations residing there.
We predict that due to the rapid rise of personal wealth in Oman, competition between domestic, regional and global banks will continue to intensify over the next few years, forcing banks to innovate new products, services, and to continue to develop deeper and more intimate relationships with their clients.
Analysts at The Dragon Banker expected an acceleration of compound annual growth rate of investible assets to increase significantly in the next few years, along with asset allocations changing in the light of this.
This report explores the growth of the high-net worth class (those with assets of at least $1,000,000 USD) and HNWI (those with assets of at least $30,000,000million USD), the sources of wealth generation and an analysis on how foreign banks that have already entered the market are doing. This report also provides financial firms who are interested in entering the country, an objective view on the market potential along with the latest regulations in the sector.
Table of Contents
1. Introduction of The Dragon Banker and Middle East private banking research
2. The Dragon Banker’s research methodology
3. HNWI’s opportunities in Oman
4. The current state of the private banking market in Oman
5. Current Insights into the Drivers of Oman’s HNWIs’ Wealth
6. Note on Regulations Impacting Oman’s private banking Sector
7. The Psychological and Behaviour Makeup of The Oman’s HNWIs
8. Market Sizing of Oman’s HNWI
9. Growth Challenges for Banks in Oman’s Wealth Management Industry
10. Business and wealth succession in Oman, and the best to worst banks
11. The number of HNWI in Oman and projections to year 2025
12. The number of UHNWI in Oman and projections to year 2025
13. Current Competition and benchmarking Amongst Banks for HNWI Clients and SWOT
National Bank of Oman
Alliance Housing Bank
Al Madina Financial & Investment Services
L. Other key wealth management firms in Oman
14. How to leverage The Dragon Banker for IT firms and Financial
The Thailand Wealth Management Report 2019
The Dragon Banker's The Thailand Wealth Managment Report 2019 is the most authoriative and comprehensive report on Thailand's wealth mangement industry.
The unique report sheds insightful views and research on the competition of wealth management in the market, the growth of the industry, and an analysis of the key players and their strategies based on interviews with key decision makers throughout Thailand's financial instittuions along with global financial firms operating in the market.
Why invest in this report?
This report is a key document for any financial institution that is planning or plans in the near future to work in Thailand's wealth management market. The report's data and information is done by our analysts best of the ability, which derives from more than 25 interviews with executives and key managers working in Thailand's wealth management market.