Shares of UBS Group AG were gaining around 8 percent in the morning trading in Switzerland as well as in pre-market activity on the NYSE after the Swiss banking major reported Tuesday significantly higher profit and revenues in its first quarter. Sequentially, the company returned to profit, the first time following its takeover of Credit Suisse AG. UBS further said it expects to complete its merger with Credit Suisse on May 31.

Sergio Ermotti, Group CEO, said, “A little over a year ago, we were asked to play a critical role in stabilizing the Swiss and global financial systems through the acquisition of Credit Suisse and we are delivering on our commitments. This quarter marks the return to reported net profits and further capital accretion – a testament to the strength of our business and client franchises and our ability to deliver significant progress on our integration plans while actively optimizing our financial resources.”

Looking ahead for the second quarter, the company expects a low-to-mid single-digit decline in net interest income in Global Wealth Management, due to moderately lower lending and deposit volumes and lower interest rates in Switzerland.

UBS also expects a mid-to-high single-digit decrease in net interest income in Personal & Corporate Banking in US dollar terms.

The company said it aims to achieve around $1.5 billion in gross cost savings by the end of 2024.

Further, UBS said it expects to complete the merger with Credit Suisse on May 31, subject to remaining regulatory approvals. The transition to a single US intermediate holding company is planned for the second quarter of 2024, and the merger of Credit Suisse (Schweiz) AG and UBS Switzerland AG continues to be planned for the third quarter, both also subject to remaining regulatory approvals.

The company added that these critical milestones will facilitate the migration of clients onto UBS platforms beginning later this year, and unlock the next phase of the cost, capital, funding and tax benefits from the second half of 2024, and by the end of 2025 and into 2026.

Meanwhile, the Financial Times reported on Monday that Ulrich Korner, the final CEO of Credit Suisse, is set to leave UBS in the coming weeks.

On May 6, UBS repaid 9 billion Swiss francs of the ELA central bank liquidity facility, totalling repayment of 29 billion francs so far. The company expects to repay the remaining 9 billion francs in the coming months.

In its first quarter, UBS’ net profit attributable to shareholders climbed 71 percent to $1.76 billion from last year’s $1.03 billion.

Earnings per share were $0.52, up from prior year’s $0.32.

In its preceding fourth quarter, net loss attributable to shareholders was $279 million or $0.09 per share.

Operating profit before tax for the first quarter was $2.38 billion, compared to $1.50 billion a year ago. Underlying profit before tax was $2.62 billion, compared to $1.57 billion last year.

Total reported revenues reached $12.74 billion, 46 percent higher than $8.74 billion in the prior year. Group underlying revenues were $12.0 billion. Total revenues grew 17 percent sequentially.

In the first quarter, net interest income climbed 40 percent year-over-year to $1.94 billion, and net fee and commission income grew 41 percent to $6.49 billion.

In Switzerland, UBS Group shares were trading at 26.96 Swiss francs, up 8.3 percent.

In pre-market activity on the NYSE, the shares were at $29.70, a growth of 7.6 percent.

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