ZURICH, April 30, 2025 (BSS/AFP) - Swiss banking giant UBS posted on Wednesday a better-than-expected net profit for the first quarter but warned of a "particularly unpredictable" outlook for the economy due to US tariffs.

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

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

Its revenue fell one percent to $12.6 billion but it was much higher than the $11.38 billion expected by AWP analysts.

Its wealth management unit posted revenue growth of five percent to $6.4 billion while investment banking revenue rose 16 percent to $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."