UBS AG announced Tuesday that it swung back to a profit in the first quarter as strong results from its investment banking unit helped boost the bottom line. The Swiss bank said it earned 2.2 billion Swiss francs ($2.02 billion) in the first quarter, compared to a loss of 1.98 billion francs in the same period a year ago.
Results, which were the bank’s strongest in several years, topped analyst estimates for 2 billion francs.
UBS’ growth in the first quarter was driven by robust activity in its investment banking unit, which posted a pre-tax profit of 1.19 million Swiss francs. The bank said strong performance in fixed income, currencies and commodities led the way.
However, the bank is still dealing with customers withdrawing funds, although at a much slower pace. Net outflows totaled 18 billion francs, much less than the 56.2 billion francs withdrawn a year ago.
Looking ahead, UBS aims to produce a full-year 2010 profit of 15 billion francs as its wealth management unit steadies and investment banking is posed for continued strength.
“We are well positioned to meet our medium-term goals. We implemented the measures announced in 2009 and delivered a good profit while managing our costs and using our balance sheet and risks in a disciplined way,” said CEO Oswald J. Grubel.
