The logo of Swiss banking giant UBS engraved on the wall is seen on its headquarters on May 8, 2019 in Zurich.
Fabrice Coffrini | AFP | Getty Images
UBS reported Tuesday that net profit had risen by 40% in the first quarter of 2020.
Net profit attributable to shareholders came in at $1.6 billion in the three months to the end of March, up from $1.1 billion in the same quarter 2019.
"The COVID-19 pandemic and the measures taken to contain it have dramatically changed the global economic outlook for the foreseeable future," the bank said in a statement.
"Global GDP is expected to contract in the near term. The disruption to many businesses and rising unemployment as a result of the pandemic are expected to lead to elevated levels of credit loss expenses for the industry."
The results come at a time of significant pressure for banks in particular, as the coronavirus pandemic has brought the global economy to a standstill.
UBS said earlier this month that it will suspend half of its 2019 dividend payout until later this year, after pressure from Swiss regulator FINMA. The bank's chief executive officer, Sergio Ermotti, said earlier this month that it was too early to discuss 2020 dividend plans.
UBS's share price has dropped around 30% over the last 12 months. In February, the bank announced that Ralph Hamers will be taking over as chief executive officer on November 1.
This is a breaking news story and will be updated shortly.
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