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Swiss bank UBS posts 14% rise in net profit, but misses estimates

  • UBS said it saw good results across its business divisions with Asia Pacific as an important driver of growth
  • UBS said that it's on track to achieve its cost savings target of 2.1 billion Swiss francs by the end of this year

The Swiss bank UBS reported a net income below market expectations, but 14 percent higher than the same period last year.

The number is nonetheless above the bank's own consensus report, which polls more analysts than Thomson Reuters, which indicated a net income of 0.897 billion Swiss francs.

Here are the key metrics:

  • Net income: 0.9 billion Swiss francs vs 1.043 billion Swiss francs, expected by Thomson Reuters
  • Earnings per share: 0.31 Swiss francs vs 0.35 Swiss francs, expected by Thomson Reuters
  • Revenue: 7.145 billion Swiss francs vs 7.060 billion, expected by Thomson Reuters

UBS said it saw good results across its business divisions with Asia Pacific as an important driver of growth.

The logo of Swiss bank UBS at its headquarters in London on May 5, 2017.
Justin Tallis | AFP | Getty Images
The logo of Swiss bank UBS at its headquarters in London on May 5, 2017.

"I'm very pleased with the good results we saw across all our business divisions and particularly pleased with the fact that our investments in the last three years in the Asia-Pacific region, despite the very challenging environment, are paying off," Sergio Ermotti, chief executive officer of UBS, told CNBC on Friday morning.

Asia has been and will continue to be one of the most important areas for the bank.

"There's a new billionaire in Asia every two to three days, so Asia continues to be a fantastic opportunity for us," he added.

The world's largest private bank reported a profit before tax that was higher by 39 percent and said that it's on track to achieve its cost savings target of 2.1 billion Swiss francs by the end of this year.

The bank expects the global economic recovery to strengthen further, but warned that geopolitical tensions and macroeconomic uncertainty still pose risks to client sentiment.

Ermotti told CNBC that "some kind of protectionism and lack of clarity around Brexit, for example, are posing some question marks."

Correction: This story has been updated to reflect that the mean Reuters estimate for net profit was 1.043 billion Swiss francs.