UBS, which is still in the process of fully absorbing rival Credit Suisse, said its profit after tax reached US$1.7 billion in the first three months of the year.

It was a 4% drop from the same period a year ago, but better than the US$1.3 billion forecast by analysts surveyed by Swiss financial news agency AWP.

Its revenue fell 1% to US$12.6 billion, but it was much higher than the US$11.38 billion expected by AWP analysts.

Its wealth management unit posted revenue growth of 5% to US$6.4 billion while investment banking revenue rose 16% to US$3.2 billion amid market volatility.

UBS was cautious in its outlook for the year, noting that US President Donald Trump’s tariffs blitz had caused major volatility in the markets.

“With a wide range of possible outcomes, the economic path forward is particularly unpredictable,” the bank said in its earnings statement.

“The prospect of higher tariffs on global trade presents a material risk to global growth and inflation, clouding the interest rate outlook,” it said.

“Prolonged uncertainty would affect sentiment and cause businesses and investors to delay important decisions on strategy, capital allocation and investments,” it added.