UBS Makes First Profit Since Bailing Out Credit Suisse

UBS Makes First Profit Since Bailing Out Credit Suisse
UBS, the Swiss banking giant, has announced a significant quarterly profit in the first quarter of 2024. This is the first profit UBS has recorded since acquiring the struggling Credit Suisse last year. 
The bank's net profit in Q1 2024 was $1.8 billion, which is a remarkable 71% increase from the same period the previous year. This is a significant recovery from the financial strain that UBS experienced immediately after the merger. In the period from June to December 2023, UBS faced nearly $1.1 billion in combined losses.
UBS shares in Zurich jumped by 10% on Tuesday after the bank's merger produced a 45% rise in revenue to $12.7 billion. Analysts were initially concerned about a possible drop in revenue, but UBS attracted $27 billion in new funds to its global wealth management division, its largest sector. 
UBS managed to save $1 billion in costs, which helped them achieve a total reduction of approximately $4 billion in costs last year. As part of its continued efforts to improve efficiency, the bank has set a goal to reduce costs by $13 billion by the end of 2026, which will involve significant reductions in its workforce.
What Does This Mean for Me?
Switzerland's finance ministry has proposed that UBS increase its capital requirements by up to $27.5 billion to protect against future losses. UBS has pushed back, arguing that discussions should focus on Credit Suisse's failures rather than increasing capital holds.
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