UBS Earnings: Reassuring Net Client Asset Inflows Support Our Narrow Moat Rating

UBS found itself in the strange place that Credit Suisse's April 24 earnings announcement was probably of more importance to UBS' valuation than its own results announcement. As crucial as the Credit Suisse takeover is, one should remember that the current UBS operations will dominate the combined entity. UBS reported robust annualized net client inflows of 6% of assets under management for the first quarter of 2023 and managed to retain deposit outflows within the group. We view these trends as supportive of our narrow moat rating.