Skip to Content


Rating as of

Morningstar’s Analysis

Currency in CHF
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


UBS' Q1 Earnings Ahead of Expectations, Even After Archegos Loss

Johann Scholtz, CFA Equity Analyst

Analyst Note

| Johann Scholtz, CFA |

Narrow-moat UBS reported net attributable profit of $1.8 billion for the first quarter, more than double the $722 million it reported a year earlier and ahead of the $1.6 billion expected by the consensus of analysts polled by UBS itself. UBS followed in arch rival Credit Suisse’s and other global peers’ footsteps in taking a hit against its profits from prime broking exposure to family office Archegos Capital. UBS’ loss was "only" $774 million, compared with the CHF 4.4 billion hit that Credit Suisse took in its first-quarter results. The Archegos loss will dominate the headlines and obscure the true strength of UBS’ underlying operating performance. Revenue would have increased 19% year on year. In contrast to many of its peers, UBS' revenue increase was not solely the result of volatile investment banking trading income or an increase in brokerage from private clients, but recurring wealth management fees also grew a robust 8%. Operating expenses grew 8% as variable compensation increased as a result of the strong operational performance. Loan-loss provisions swung into a net credit as asset quality remained sound. The release from provisions would have been even greater if UBS had not applied a management overlay to reflect its caution regarding the outlook for the rest of the year. We maintain our narrow moat rating and CHF 14 fair value estimate.

Read Full Analysis

Company Profile

Business Description

UBS is the world’s largest wealth manager and is the product of multiple mergers over the years. Apart from wealth and asset management, it operates a universal bank in Switzerland and a global investment bank.

Bahnhofstrasse 45
Zurich, CH-8001, Switzerland
T +41 442341111
Sector Financial Services
Industry Banks - Diversified
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 71,551


Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.