UBS Group AG Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-14
UBS Group AG Reports Second Quarter 2024 Financial Results
UBS Group AG reported its financial results for the second quarter ending June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimate | Q1 2024 | QoQ Change |
|---|---|---|---|---|---|---|
| Total Revenue | $11.29B | $9.09B | +24.2% | $11.29B | $9.09B | +24.2% |
| Earnings Per Share (EPS) | $0.29 | ($14,941M) | N/A | $0.29 | ($14,950M) | N/A |
| Operating Income | $6.121B | $9.091B | -32.6% | N/A | N/A | N/A |
| Net Profit / (Loss) | $3.115B | ($14.941B) | N/A | N/A | N/A | N/A |
Interpretation : UBS Group AG reported a total revenue of $11.29 billion for Q2 2024, in line with consensus estimates and marking a significant improvement from Q2 2023’s $9.09 billion. The EPS also reached $0.29, meeting expectations, compared to a substantial loss in the previous year. This positive financial performance indicates stabilization and growth post the Credit Suisse acquisition and restructuring.
Revenue Performance by Segment
| Segment | Revenue Q2 2024 | Revenue Q2 2023 | Comparison to Guidance |
|---|---|---|---|
| Dividend Income from UBS AG | $3.000B | $6.000B | N/A |
| Other Operating Income | $3.121B | $3.091B | N/A |
| Impairment on Credit Suisse | $21.855B | N/A | N/A |
| Extraordinary Income | $17.317B | N/A | N/A |
Interpretation : The decrease in dividend income from UBS AG was offset by a stable performance in other operating income and significant extraordinary income. The large impairment of Credit Suisse AG reflects the financial adjustment post-acquisition.
Dividends and Share Repurchase Program
The Annual General Meeting held on April 5, 2023, approved an ordinary cash dividend of $0.70 per share, amounting to a total payout of $2,256 million. Half of this was sourced from the capital contribution reserve, and the remaining from the total profit appropriation. Additionally, 62,548,000 shares were canceled as part of the 2021 share repurchase program.
Stock Price Movement
Following this earnings release, UBS Group AG’s stock price saw a significant increase of 3.18%, reflecting investor confidence following the stabilized financial performance and the successful integration of acquired assets.
Summary : UBS Group AG’s Q2 2024 earnings report showcases a robust recovery with total revenue and EPS meeting consensus estimates. The substantial positive net profit signifies a solid turnaround from the previous year, indicating successful initial digestion of Credit Suisse AG. The company’s stock price responded positively, rising by 3.18% post-release.
