Swiss banking giant UBS netted a $3 billion returns in the first quarter, beating analysts’ estimates.

But it warned that net interest income in its global wealth management and personal and corporate banking units is likely to be “broadly flat” in the second quarter.

UBS generated a net gains attributable to shareholders of $3 billion for the first quarter, up 80% year-on-year and surpassing the $2.8 billion estimated by analysts, according to an LSEG-compiled consensus poll.

The Swiss banking and asset management giant’s common equity tier (CET) 1 capital ratio — a gauge of a bank’s solvency — also increased, reaching 14.7% during the period, up from 14.4% the previous quarter.

Reporting its first quarter earnings on Wednesday, UBS mentioned it remains on track to acquire back $3 billion in shares ahead of its next earnings report for the second quarter, having repurchased $900 million of shares during the three-month period. The bank also flagged plans for further share buybacks by the end of the year.

The Zurich-headquartered firm stated markets have remained “resilient” amid hopes of a lasting resolution to the ongoing Middle East conflict.

But acknowledging that risks remain “elevated” amid a rapidly-changing situation, the bank warned that second quarter net interest income across both its global wealth management and personal and corporate banking businesses is set to be “broadly flat”.

CEO Sergio Ermotti remarked UBS had enjoyed a “very strong quarter,” demonstrating resilience despite tensions arising from the U.S.-Iran war, adding that “markets are implying a solution will be found.”

Speaking with CNBC’s “Squawk Box Europe” on Wednesday, Ermotti highlighted strong performances in the bank’s equity capital markets business, as well as growth in its alternative assets unit, noting that UBS has seen “good momentum across the board.”

“We saw all our business delivering double-digit growth in profitability,” Ermotti told CNBC’s Carolin Roth in an interview.

Underlying profits before tax totaled $3.9 billion quarter, up 54% year-on-year and beating analyst expectations of $3.2 billion. This also touches on aspects of portfolio.

The group’s global wealth management business boasted net fresh assets of $37 billion by the end of the quarter, a 3.1% annualized boost. Net latest funds within its asset management division topped $14 billion, up 2.7% year-on-year.

Switzerland’s government recently unveiled plans aimed at preventing another Credit Suisse-style banking collapse, which would require UBS to hold around $20 billion in extra capital.

UBS has continued to push back against the sweeping regulatory overhaul, which would see investments held by its foreign subsidiaries treated separately from its overall group-wide CET1 capital.

Meanwhile, Ermotti mentioned the bank does “not see any major dislocation or issues” in the private credit space. He added that UBS’s exposure here is “well diversified” and “good quality”, amounting to around 0.5% of its balance sheet.

“A few funds are under stress, and others have been gating according to the terms and conditions of the vehicle,” he stated. “But other than that, we don’t see major tensions. It’s more of a liquidity kind of issue, than necessarily a clear underlying performance issue.”