UBS Group AG has agreed to sell a 36.01% stake in Credit Suisse Securities (China) for $91.4 million to Beijing State-owned Assets Management Co. Founder Securities will sell its entire 49% stake for $124 million. The Beijing firm will have an 85.01% majority stake, while UBS will retain 15% after the sale. The sale ends the rivalry between Citadel Securities and Beijing State-owned Assets Management Co for Credit Suisse's investment bank in China. The sale is a result of UBS's acquisition of Credit Suisse's China venture and its emergency rescue last year. Before the collapse, Credit Suisse had offered to buy out Founder's stake, valuing the firm at about $334 million. [391b4c70]
UBS Group AG has reported net income of $1.8 billion in the first quarter, surpassing analysts' estimates of $598 million. The strong performance was driven by the wealth management unit, which saw net new assets of $27 billion, and the investment bank, which reported its first profit since the takeover of Credit Suisse. UBS plans to complete the legal merger with Credit Suisse by May 31 and aims to return about $2 billion to investors over the next two years. The bank has realized $1 billion in cost savings in Q1 and targets another $1.5 billion by the end of 2024. UBS Chairman Colm Kelleher has expressed concerns about the need for more capital, as the bank faces a potential capital hit of about $20 billion due to proposed reforms by the Swiss government. Despite this, UBS shares surged 8.1% after the earnings release. [0576e335]