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(Bloomberg) -- UBS Group AG’s markets unit posted a record performance as geopolitical turmoil spurs volatility that the bank says is set to continue.

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Net income for the three months to March came in at $1.7 billion, beating estimates, aided by a 32% revenue surge from trading that was driven by equities and foreign exchange.

The uncertainty brought about by the Trump administration has prompted investors to shift their portfolios, handing the trading desks of global banks a surge in business. UBS however warned that spiking concerns over trade policy could cause businesses to put off investment and would hurt fees from dealmaking.

“It’s going to depend on the developments on the tariff front,” UBS Chief Executive Officer Sergio Ermotti said in an interview with Bloomberg Television’s Tom Mackenzie on Wednesday. “Uncertainty also has a cost, and therefore investors and corporates will probably slow down their investment plans.”

UBS shares rose after the report before erasing gains, trading down 0.7% as of 10:41 a.m. in Zurich.

At the investment bank, higher revenue at the trading unit was partly offset by weaker performance in dealmaking and advisory. Ermotti said in March that the market for services like M&A advisory and capital raising had practically seized up due to uncertainty over economic policy.

Deutsche Bank AG’s debt trading unit posted a record first quarter on the back of volatility, while Societe Generale SA saw a surge in equities trading in the period.

UBS’s wealth management division posted a pre-tax profit of $1.4 billion, roughly in line with estimates, aided by higher fees and transaction income. Amid a broadly positive report, analysts noted a decline in net interest income at the wealth unit. As central bank rates in Europe and Switzerland continue to fall, UBS said it expects a second-quarter dip in interest income at the unit of “low single digits.”

The bank confirmed its existing plans for dividends and buybacks. In February it said it aims to buy back up to $3 billion of its own shares this year, one third of that in the first half of the year and the remaining $2 billion in the second. Buybacks remain subject to keeping the main capital ratio around its current level of 14% and the absence of “material and immediate” changes to the Swiss regulatory regime.