UBS said that in its investment banking division, the global market enjoyed a record quarter with revenues up 32% year-on-year, the basis for higher client activity in stocks and forex stocks.
However, the outlook is softer as the background of US President Donald Trump’s comprehensive tariffs raises uncertainty. “The prospect of higher tariffs in global trade poses significant risks to global growth and inflation, and casts interest rate prospects,” UBS said.
UBS expects net interest income in global wealth management business to decline in the low unit figures in the second quarter of 2025, and expects a similar decline in its Swiss business.
The bank added that ongoing market uncertainty could delay company transactions. “With a wide range of possible outcomes, the pathways for the economy are particularly unpredictable,” UBS said, adding that markets may volatility further, which could prompt investors to delay decisions on strategy and capital allocation. The bank reconfirmed its 2025 stock buyback plan, saying it paid off $500 million in the first quarter, and retained another $2.5 billion for the remainder of the year despite uncertain outlook.
Swiss authorities have a plan to hold more capital, which is the weight on bank stocks, and the government is expected to carry out a proposal for overhaul of bank regulations in June.
Authorities have pledged to develop stricter banking regulations to prevent the repeated collapse of Credit Suisse in 2023, which was acquired by UBS in an emergency acquisition.
UBS said Credit Suisse’s consolidation is still normal, adding that it further provided $900 million in total cost savings in exit rates and reduced cumulative costs to $8.4 billion, or $13 billion in 65% of the target cut.
The results show that UBS reduced its workforce by nearly 2,000 full-time equivalents in the first quarter, reaching less than 107,000 full-time equivalents by the end of March.
