- UBS reported a net income of $1.69 billion in Q1 2025, surpassing estimates, despite a year-over-year decline of 3.6%.
- Total revenue was $12.56 billion, slightly decreasing by 1.4% from the previous year but exceeding expectations of $11.9 billion.
- Net interest income fell by 16% year-over-year to $1.63 billion, missing the target of $1.75 billion.
- Net fee and commission income increased by 4.4% to $6.78 billion, surpassing the estimate of $6.7 billion.
- UBS’s operating expenses rose by 0.7% to $10.32 billion, higher than the anticipated $10.06 billion.
- Pretax profit decreased by 10% year-over-year, amounting to $2.13 billion, but exceeded the forecast of $1.97 billion.
- The wealth management sector saw a 23% increase in pretax profit to $1.36 billion, close to the estimate of $1.37 billion.
- The investment bank achieved a 30% increase in pretax profit, totaling $722 million, surpassing the expected $632.7 million.
- Asset management’s pretax profit grew by 22% to $135 million, though it was below the projection of $157.9 million.
- Earnings per share were 51 cents, narrowly missing last year’s 52 cents but significantly above the 40-cent estimate.
- The Common Equity Tier 1 capital ratio stood at 14.3%, aligned with expectations and unchanged from the previous quarter.
- UBS’s cost to income ratio was 82.2%, better than the estimated 84.1%.
- The return on tangible equity was 8.5%, slightly below the previous year’s 9% but well above the 6.82% estimate.
- Wealth management total revenue increased by 4.5% to $6.42 billion, surpassing the $6.29 billion estimate.
- Investment bank revenue grew by 16% to $3.18 billion, exceeding the anticipated $2.83 billion.
- UBS is aware of the risks posed by potential higher tariffs on global trade, which may impact global growth, inflation, and interest rates.
- An effectively zero tax rate is expected for Q2 2025.
- UBS plans to fully execute its 2025 capital return ambitions, having announced them in February.
- The firm is accruing an approximate 10% increase in the ordinary dividend and has reserved $2.5 billion for further share buybacks.
- For 2026, UBS aims for share repurchases to exceed the FY 2022 level of $5.6 billion.
- Despite market uncertainties, UBS remains confident in achieving its financial targets.
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UBS Group on Smartkarma
Analysts on Smartkarma, like those from Asia Real Estate Tracker, are closely monitoring developments related to UBS Group. The latest insights from Asia Real Estate Tracker on January 23, 2025, highlight positive news within the real estate sector, indicating a bullish sentiment. They report on significant movements such as the launch of a $3.8 billion fund by Scape Australia for student housing, CtrlS’s expansion with a new data center in Hyderabad, and the resilience of Singapore’s real estate investment despite a Q4 downturn. This coverage provides investors with valuable information on key players and market trends impacting UBS Group’s operations.
The research reports by independent analysts offer nuanced perspectives on the evolving landscape that UBS Group operates in. Investors can rely on insights from reputable sources like Asia Real Estate Tracker to stay informed about the latest developments shaping UBS Group’s outlook. By analyzing information from these reports and understanding the bullish sentiment expressed by analysts, investors can make more informed decisions regarding their investment strategies related to UBS Group and the broader real estate sector.
A look at UBS Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
UBS Group AG, a leading financial services provider, has garnered a solid overall outlook according to Smartkarma Smart Scores. With high marks in Value, the company is perceived to have strong underlying fundamentals. Additionally, its respectable scores in Dividend and Growth suggest a promising future for investors seeking steady income and potential growth opportunities. However, lower scores in Resilience and Momentum indicate areas where UBS Group may face challenges and could work on improving. Overall, UBS Group’s wide range of financial services, including investment, banking, wealth management, and securities services, positions it as a comprehensive player in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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