UBS reported a Q1 2022 net profit of $2.1bn, a 17% YoY rise. This follows a drop in Q4 net profit to $1.35bn at the end of the last year. Reuters notes that this is UBS’s best first quarter profit in 15 years. The results came despite its large Global Wealth Management reporting a 7% YoY drop in profit before taxes (PBT) to $1.3bn as its Investment Banking division saw PBT rise 126% YoY. Global Markets revenues increased by $875mn or 59% YoY, helping offset a decline in capital markets and advisory revenue. UBS confirmed plans to buy back around $5bn of shares in 2022. Its CET 1 ratio was at 14.3%, down 70bp QoQ.
UBS’s 3.875% Perp was down 0.3 points to 88.56 yielding 7.15%.
Banco Santander reported a 58% YoY jump in net profits to €2.54bn ($2.72bn). The bank’s net interest income rose 11% YoY to €8.9bn ($bn) and net fee income rose 10% to €2.8bn ($bn). Net loan-loss provisions were at €2.1bn vs. $1.9bn during the same period last year. Santander said that its diversified business model especially in Latin America, helped the bank to cope with tough conditions for lenders in Europe. Its overall cost-to-income ratio fell to 45% from 47.9% sequentially. The bank continued to reiterate its distribution policy of 40% of underlying profits to shareholders equally split between dividends and buybacks. Its CET1 ratio was at 12.05%, up 9bp QoQ and in-line with its capital target of 12%.
Santander’s USD 7.5% Perp was down 0.16 points to 101.91, yielding 6.36%.