- UBS’s net income for Q4 2024 was $770 million, beating the estimated $485.7 million, and reversing a $279 million loss year-over-year.
- Total revenue grew by 7.2% year-over-year to $11.64 billion, slightly surpassing the estimate of $11.43 billion.
- Net interest income declined by 12% to $1.84 billion, lower than the expected $2.3 billion.
- Net fee and commission income increased by 14% to $6.60 billion, exceeding the estimate of $6.53 billion.
- Operating expenses dropped by 9.7% to $10.36 billion, better than the estimated $10.56 billion.
- Pretax profit for Q4 2024 reached $1.05 billion, improving from a $751 million loss the previous year, and surpassing the $975.3 million estimate.
- Wealth Management achieved a pretax profit of $867 million, just under the $931.7 million estimate.
- The Investment Bank reported a substantial pretax profit of $479 million, far exceeding the expected $63.6 million.
- Asset Management’s pretax profit was $128 million, slightly below the $134.3 million estimate.
- Earnings per share (EPS) were 23 cents, a significant improvement over the previous year’s loss per share of 9.0 cents and higher than the estimated 14 cents.
- The Common Equity Tier 1 (CET1) ratio remained stable at 14.3%, meeting expectations.
- The cost to income ratio was 89%, better than the estimated 89.7%.
- The return on tangible equity increased to 3.9% from a negative 1.4% the previous year, outperforming the estimated 2.02%.
- Wealth Management’s total revenue was slightly above estimates at $6.12 billion.
- The Investment Bank saw total revenue of $2.75 billion, surpassing the expectation of $2.38 billion.
- For the full year 2024, UBS declared a dividend of 90 cents per share, exceeding the 80 cents estimate.
- UBS plans to repurchase $1 billion of shares in the first half of 2025, with the potential for an additional $2 billion in the second half, contingent upon maintaining a CET1 capital ratio of around 14%.
- Investor behavior in 2025 may be influenced by macroeconomic uncertainties outside the US, inflation, central bank policies, and geopolitical events such as the German elections.
- UBS expects a low-to-mid single-digit percentage sequential decline in Global Wealth Management’s net interest income in Q1 2025, along with around a 10% decline in Personal & Corporate Banking’s net interest income in CHF.
- Integration-related expenses are projected to be roughly $1.1 billion, with PPA effect accretion expected to contribute around $0.5 billion to total revenues.
- UBS is on track for ~$13 billion in gross cost reductions by 2026, with cumulative integration expenses of ~$14 billion by that time.
- In 2025, UBS plans to achieve $2.5 billion in gross cost savings.
- UBS reported $97 billion in net new assets for 2024, positioning itself to deliver approximately $100 billion in net new assets in 2025.
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UBS Group on Smartkarma
Analysts on Smartkarma are buzzing with bullish sentiment over their coverage of UBS Group. Asia Real Estate Tracker recently highlighted key insights on the company, shedding light on the positive outlook. In their report titled “Asia Real Estate Tracker (23-Jan-2025): Aus revamps student housing vehicle for $3.8B fund,” they discuss Scape Australia’s bold move to launch a $3.8 billion fund for student housing, signaling a significant investment in the sector. The report also touches on CtrlS’s expansion plans with the construction of a new data center in Hyderabad, further adding to the optimism surrounding UBS Group.
With top independent analysts like those at Asia Real Estate Tracker providing such promising research, investors are taking note of the growth potential for UBS Group. The bullish sentiment expressed in the report reflects a positive stance on the company’s future performance. This in-depth analysis on Smartkarma showcases the valuable insights and research available to investors seeking a comprehensive understanding of companies like UBS Group and the opportunities they present in the market.
A look at UBS Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
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 financial services provider, has been assigned a range of Smartkarma Smart Scores to assess its overall outlook. With a strong momentum score of 5, UBS Group exhibits significant positive market momentum. This indicates a favorable trend in the company’s stock performance. While the company scored well on value at 4, highlighting that it is seen as undervalued by investors, its dividend, growth, and resilience scores are moderate, suggesting room for improvement in these areas.
UBS Group AG is a prominent player in the financial services sector, offering a range of services to private, corporate, and institutional clients. The company’s holistic approach to wealth management and diverse services, including investment and retail banking, positions it as a comprehensive financial partner. Despite varied Smart Scores across different factors, with a strong focus on momentum, UBS Group’s solid foundation and extensive service offerings indicate potential for long-term growth and stability in the ever-changing financial landscape.
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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