NEW YORK (
saw its U.S.-traded shares rose almost 5% on Monday after the Swiss bank said first-quarter profits would be better than most analysts have been expecting.
UBS, which is slated to announce its results on May 4, said it expects to report a pre-tax profit of "at least" CHF 2.5 billion, or $2.35 billion at current exchange rates. That would be UBS's highest profit since the second quarter of 2007, according to
Most analysts were expecting a number closer to CHF 2.3 billion ($2.16 billion), according to a report Monday from FBR Capital Markets analyst Jonathan Tyce.
UBS said clients withdrew money at a "substantially lower" rate than in the fourth quarter. It estimates CHF 8 billion ($7.51 billion) in outflows in its European wealth management unit, CHF 7 billion ($6.57 billion) in its Americas unit, and CHF 3 billion ($2.82 billion) in its global wealth management business.
reported March 30 that UBS would see $2.3 billion in fixed-income revenues, which according to Tyce's report would be significantly higher than most analysts are expecting. UBS responded to that report saying that $2.3 billion figure was slightly higher than its internal forecasts.
UBS was stung badly in securitization markets during the crisis, also running into trouble with U.S. law enforcement over allegations it helped U.S. clients evade taxes. It has been under new management since February of last year, when former
CEO Oswald Gruebel took the helm.
Gruebel, himself a former bond trader, has made about 350 fixed income hires in the past year, according to
Rochdale Securities analyst Richard Bove lifted his rating on UBS to buy from neutral and increased his price target on the stock to $21 from $18 following the news.
Written by Dan Freed in New York