Market madness in the midst of the pandemic helped Swiss banks UBS and Credit Suisse - the world's largest Manager of capital significantly increase the profit for the first quarter.
UBS received 4 million requests for quotations per day from private customers doubled over the December level of such requests for the potential transactions.
Big managers found that banking for billionaires to replenish their own coffers at the expense of huge transaction fees.
"this situation, although they represent risks, and they need to very actively manage, also provide opportunities," said Iqbal Khan, co-chair of the world business UBS cost of 2.3 trillion dollars, which showed its best first quarter since before the financial crisis of 2008.
while in falling markets reduced the total level of managed assets, and a fall in interest rates effect on interest income, the net margin UBS managed money increased to 20 basis points, the highest level in recent years.
Credit Suisse has demonstrated double digit profit growth for the quarter, despite an increase in provisions for expected credit losses. American lenders Goldman Sachs, JPMorgan and Bank of America also recorded a jump in revenues from managing assets, while private banks Pictet and Vontobel are already planning to open new branches and expand the staff.
But now the question is how to keep the profit when market volatility and trading volumes decrease.
"we had a fantastic first quarter but in first quarter we have not felt a significant impact in reducing assets," said Claudio de Santis, head of Deutsche Bank, adding that further prolonged the downturn will change the situation.
Many of them are focused on finding investment opportunities for clients beyond the public markets - often involving distressed assets and loans to those whose business needs extra money to survive the crisis.
"If today you have a large family office, then I hope you sit without money. You can borrow the money or give them your company, or you can use the money to buy troubled assets that have long-term value," said de Santis.
Earlier it was reported that the Norwegian national wealth Fund — the world's largest financial organizations of its kind is sold out shares of some of the world's largest mining companies, in particular, has excluded from its portfolio the Swiss Glencore, Anglo American, South African, German company RWE, the South African petrochemical company Sasol and Dutch company AGL Energy.
