UBS AG, Switzerland’s largest bank, attracted the most new money from wealthy customers since the end of 2007 and reported first-quarter profit that beat analysts’ estimates.
UBS rose as much as 6.1 per cent in Swiss trading, the biggest gain since July, after wealth management and retail clients added a net 16.7 billion francs ($19 billion) in the quarter, more than double the estimate of analysts surveyed by Bloomberg. Net income was 1.81 billion francs, topping the 1.69 billion-franc forecast of analysts.
Chief Executive Officer Oswald Gruebel attributed the increase in new funds to “the return of client trust and confidence” after wealthy customers withdrew 251.6 billion francs in the nine quarters through June. Earnings at the investment bank declined on lower revenue from trading stocks and bonds and advising clients.
“The main thing is they’re having inflows again, and that’s good,” said Dirk Becker, a Frankfurt-based analyst at Kepler Capital Markets. “The investment bank will remain a construction site for UBS for a while.”
UBS rose 5.7 per cent to 17.54 francs by 9.55 am, bringing the gain this year to 14 per cent. That compares with a 2.6 per cent increase in the 48-company Bloomberg Europe Banks and Financial Services Index.
Ford Q1 profit more than expected
Ford Motor Co reported its best first-quarter profit in 13 years, driven by strong sales in its home market and demand for more fuel efficient vehicles.
Net income rose to $2.55 billion, or 61 cents a share, compared with $2.09 billion, or 50 cents a share, in the year earlier period. It was the highest first-quarter net income since 1998.
Excluding one-time items, it earned 62 cents a share, easily topping the 50 cents analysts polled by Thomson Reuters had expected. It was the seventh straight quarter of operating profit.
Revenue rose to $33.1 billion from $28.1 billion last year. Analysts had expected $29.7 billion.
Coca-Cola profit misses analyst estimates on Japan disaster
Coca-Cola Co, the world’s largest soft-drink maker, posted first-quarter profit that fell short of analysts’ projections as earthquake damage squeezed margins in Japan and total revenue trailed expectations. The shares fell the most in 10 months. Excluding items such as restructuring costs, earnings were 86 cents, compared with the 87-cent average of estimates compiled by Bloomberg. Damage from the March earthquake in Japan cut 1 cent from profit, the Atlanta-based company said on Tuesday in a statement. Sales climbed to $10.5 billion, short of the average analyst estimate of $10.7 billion.
