UBS reports doubled profits to €1.56bn

The world’s sixth biggest bank, UBS, today said it had doubled first quarter net profits, but warned that good market conditions were unlikely to continue through 2004.

Swiss-based UBS posted net profits of 2.42bn Swiss francs (€1.56bn), up from €780m a year ago.

Operating income rose 33% to 10.3bn francs (€6.64bn).

Its London-based investment banking division, UBS Investment Bank – formerly known as UBS Warburg – saw profits rise by 115% helped by a particularly good performance from its equities activities.

UBS, which has its Swiss head offices in Basel and Zurich, operates in more than 50 countries.

UBS chief executive Peter Wuffli said the “outstanding” quarterly performance reflected excellent conditions in major financial markets.

“It also shows the pay-off from investing in our business countercyclically during the past few years, positioning ourselves for exactly these kinds of opportunities,” he said.

All UBS businesses reported income and profit gains in the first quarter compared with a year earlier, with best results coming in the company’s investment and wealth management businesses.

The bank said it did not expect “such a positive combination of circumstances” as the year progresses.

The bank said the first quarter was marked by the launch of its global branding campaign, under the slogan “You and us.”

The advertising has been targeted on key markets where UBS needs to further build its brand to achieve growth targets, particularly the United States.

Swiss rival Credit Suisse reports first quarter earnings tomorrow, but has already said it expects net profits of 1.8bn francs (€1.16bn).