As of Monday 5th July, Jeff Bezos is no longer Amazon CEO, having stepped down from his
UBS increased its earnings in the first quarter of 2021 thanks to higher revenues and lower credit risks. The company’s net income climbed to $1.82 billion from $1.6 billion over the same period last year. The company also revealed that its’ profits suffered from the Archegos scandal.
Apparently, the revenues were lower by $774 million against the forecast, as a result of the collapse of the hedge fund. Archegos Capital was the client of UBS’ prime brokerage firm. UBS’ operating income hit $8.7 billion this quarter, while last year it was $7.9 billion over the same period. Operating expenses declined from $6.4 billion to $5.9 billion a year ago.
UBS CEO Ralph Hamers said the bank was highly disappointed by the hit.
“We are taking it very seriously. We have started a very detailed review of the different prime brokers’ relationships that we have, the family offices’ relationship that we have as well, the risk management processes that we have, in order to really get the lessons learned and make sure we implement them so that going forward it doesn’t happen again,” he said.
Despite his disappointment, Hamers said that “performance was really strong across wealth management, asset management, the investment bank and also the activities here in Switzerland.”
“So from that perspective actually a real, well balanced and strong quarter if it weren’t for the loss that we also had to take, but even after the loss, we performed at a 18.2% return on CET1, which is a really good result,” he added.
Hamers is optimistic for the bank’s future but worries whether the economy will recover following the pandemic. While revenues may be affected in the second quarter, the bank does expect profits to grow from higher asset prices. The bank CEO added, “We should all be aware there is a lot of optimism in the market and clearly there is a lot of good news that has come to the market, but I would also want to look at some of the challenges that we see. Will the pandemic be over? That is the question. Will vaccination continue the way it is? How will the economy truly recover?”
Nomura Announces Losses From Archegos Scandal
Nomura Holdings Inc has announced losses of around $2 billion last month, which added to its tally of $2.85 billion. The damage included a loss of 245.7 billion yen, about $2.27 billion for the year ending in March. The losses are directly linked to the Archegos scandal.
“We are not planning to make major changes to our U.S. and global business strategy, “commented Nomura’s CEO Kentaro Okuda during a media briefing. Nomura plans to improve its risk-management systems but commented that they have not had similar problems with other clients.
Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. Ebrókerház Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The information presented does not involve any specific investment objectives, financial situation, and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.
Please consider that no news or information shared, nor any content included in any other document available in this website, should be understood in any way, either explicitly or implicitly, directly or indirectly as investment advice, recommendation, or a proposal for an investment strategy related to a financial instrument, as these are made available to you solely for information purposes. The data and information disclosed in the news or in the website, or the analyses attached to trading charts, only reflect the result of a technical analysis done by a professionally independent third party and may change without any prior notice.