Swiss bank UBS has posted its best quarterly performance yet with a 29% increase in earnings from continued operations to CHF3.2 billion.
The bank said that the upturn in financial markets helped drive profits. High brokerage and investment fund fees and a record result in portfolio and other management fees more than offset higher commission expenses, which were up because of increased client activity.
Clive Standish, chief financial officer, said: The strong position we have in our areas of focus allowed us to take full advantage of the positive environment, producing our best quarterly performance ever.
The equities business posted a very strong result with revenues of CHF 2.9 billion, up 73% from the same period in 2005, as the improvement in market conditions seen towards the end of last year continued into first quarter 2006. The wealth management US division reported record pre-tax profit of CHF186 million, up 124% compared with CHF83 million in fourth quarter 2005.
The results also included a provision for CHF112 million in legal costs for the Sumitomo settlement, relating to a decade-long copper trading dispute with Japan’s Sumitomo Corporation.