Today’s need-to-know storiesUBS profits up 80% as Credit Suisse integration nears end
UBS posted a first-quarter net profit of $3bn, up 80 per cent year on year, supported by strong client activity driven by market volatility triggered by the Iran war.
The Swiss banking group reported a return on common equity tier 1 capital of 16.8 per cent as revenue rose to a record $14.2bn, and said it remains on course to complete its Credit Suisse integration by the end of 2026.
“In the first quarter we continued helping clients navigate a volatile and unpredictable geopolitical and market environment, leveraging the strength and breadth of our global, diversified franchise,” said chief executive Sergio Ermotti.
Ermotti said the lender had now transferred all Credit Suisse client accounts in Switzerland, calling it a crucial milestone in “one of the most complex integrations in banking history”.
The results should help ease investor concerns over tighter Swiss capital requirements, according to Philip Richards, a senior industry analyst at Bloomberg Intelligence.
“Topping estimates by 8 per cent and driving underlying pre-tax profit 22 per cent above consensus can offset concerns over the Swiss government’s hiked $22bn capital demand — especially since the bank committed to at least $3bn of share buybacks this year,” Richards said in emailed comments to The Banker.
Lloyds profits rise 33% despite Middle East uncertainty
Lloyds Banking Group reported a 33 per cent rise in first-quarter pre-tax profit to £2.03bn, beating analyst expectations. Higher lending income and lower costs supported earnings, despite a £151mn impairment charge linked to revised economic assumptions due to the war in the Middle East.
The UK’s largest mortgage lender said net interest income increased to £3.57bn from £3.29bn a year earlier, while operating costs fell 3 per cent.
Lloyds said the conflict in the Middle East could weigh on the UK and global economies and push up unemployment, prompting it to downgrade some loss modelling scenarios.
However, the group has maintained its 2026 guidance, including a target for return on tangible equity of more than 16 per cent.
The bank set aside a total of £295mn for potential loan losses but left unchanged a provision amounting to almost £2bn related to the car finance mis-selling scandal.
“Our differentiated business model remains resilient in the context of the current economic uncertainties,” chief executive Charlie Nunn said.
Wells Fargo votes down scrutiny of its climate litigation exposure
Climate finance campaigners have criticised Wells Fargo shareholders after investors voted down three resolutions at the bank’s annual meeting that sought greater scrutiny of its climate litigation exposure, fossil fuel financing and record on indigenous peoples’ rights.
The proposals were filed by shareholder groups including As You Sow, Investor Advocates for Social Justice, American Baptist Home Mission Societies and the Office of the New York City Comptroller.
HSBC board could face investor dissent at shareholder meeting
They called for a report on potential litigation risks arising from the financing of high-carbon companies, a concern heightened by the bank’s recent decision to drop its financed emissions reduction targets.
The resolutions also sought board-level oversight of risks to indigenous peoples linked to Wells Fargo’s lending and underwriting, as well as annual disclosures of the bank’s ratio of low carbon to fossil fuel energy financing.
“Wells Fargo is completely disregarding the mounting risks of pouring billions into fossil fuels,” said Hannah Saggau, senior climate finance campaigner at Stand.earth. “Despite the Trump regime’s attempts to pull the wool over our eyes, climate, transition and indigenous rights risks are real and material.”
Goldman Sachs blocks Claude AI for Hong Kong staff
Goldman Sachs has blocked its Hong Kong bankers from using Anthropic’s Claude AI models, according to an FT report citing people familiar with the matter.
Staff lost access to Claude several weeks ago, the report said. The move followed discussions with Anthropic, after which Goldman took a strict reading of its contract and concluded that employees in Hong Kong should not use the company’s products.
While US-built AI tools such as Claude and ChatGPT are banned in mainland China, Hong Kong has largely remained outside those controls.
Anthropic told the FT that Claude had never been officially “supported” in Hong Kong, but declined to comment further.
The restrictions do not apply to Goldman’s contracts with other AI providers, including OpenAI, the FT’s report said.