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UBS UBS's 1Q21 results materials are available at ubs.com/investors The audio webcast of the earnings call starts at 09:00 CET , 27 April 2021 Investor Relations Tel . + 41-44-234 41 00 Media Relations Tel . + 41-44-234 85 00 1Q21 net profit of USD 1.8bn , 18.2 % return on CET1 capital Group highlights Building on client connectivity through advice , solutions and thought leadership in a dynamic environment : Our clients continued to put their trust in us and benefitted from the full spectrum of our business mix and geographical diversification . This , together with favorable market conditions and investor sentiment , led to higher recurring revenues YoY , while strong client activity drove transaction income , as well as an increase in lending across our businesses . 1Q21 financials : PBT was USD 2,298m ( up 14 % YoY ) , including net credit loss releases of USD 28m . The cost ' income ratio was 73.8 % , 1.5 percentage points higher YoY . Operating income increased by 10 % YOY , while operating expenses increased by 8 % . Net profit attributable to shareholders was USD 1,824m ( up 14 % YoY ) , with diluted earnings per share of USD 0.49 . Return on CET1 capital ' was 18.2 % . The default by a US - based client of our prime brokerage business resulted in an impact on net profit attributable to shareholders of USD 434m . Our strong capital position supports growth and shareholder returns : The quarter - end CET1 capital ratio was 14.0 % ( guidance : -13 % ) and the CET1 leverage ratio was 3.89 % ( guidance : > 3.7 % ) , both up QoQ . We paid the 2020 ordinary dividend of USD 0.37 per share in April 2021 ( USD 1.3bn ) and we repurchased USD 1.1 bn of shares year - to date . We will resume repurchasing shares shortly . - Unlocking the power of UBS : We have unveiled our purpose statement : Reimagining the power of investing . Connecting people for a better world . Our purpose together with our new strategic framework consisting of our vision , client promise , strategic imperatives , and sustainability commitments - maps out the next steps in our firm's journey . Ralph Hamers , UBS's CEO said : " In the first quarter of 2021 , our clients benefited from our broad capabilities , geographic reach and connectivity . They continued to put their trust in us and looked to UBS for advice , solutions and thought leadership in a dynamic market environment . This was evidenced by the continued net inflows that helped our invested assets across wealth and asset management grow by over 100 billion dollars to 4.2 trillion . This , together with favorable market conditions and improved investor sentiment , contributed to positive results in the first quarter of 2021. All in all , we saw record activity across our client franchises , resulting in operating income being up 10 % , profit before tax up 14 % , and net profit attributable to shareholders up 14 % , compared with the first quarter of 2020 which was strong in itself . However , our first quarter results also factored in a loss related to the default by a single US - based prime brokerage client . We are all clearly disappointed and are taking this very seriously . A detailed review of our relevant risk management processes is underway and appropriate measures are being put in place to avoid such situations in the future . This never impeded our ability to serve our clients . We were still able to increase our CET1 capital ratio to 14 % and deliver a return on CET1 capital of 18 % . Our Investment Bank fully absorbed this loss , yet still delivered a 13 % return on attributed equity , which would have been in excess of 30 % had it not been for this incident . UBS Group AG and UBS AG , Media Release , 27 April 2021 Our financial strength and ability to weather all seasons , together with our unique positioning as the largest truly global wealth manager , enable us to look to our future with confidence . In an ever - evolving world , we , too , must continue to improve and adapt . That's why I'm proud to unveil our new strategy today . It all starts with our purpose , our why : Reimagining the power of investing . Connecting people for a better world . Page 1 of 12