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01/10 01:09
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary presents a mixed picture. The financial performance and capital position appear strong, with a positive outlook on client activity and market stabilization. However, uncertainties in regulatory proposals, lack of concrete guidance, and management's evasive responses in the Q&A section introduce concerns. The absence of a market cap makes it difficult to gauge the stock's sensitivity to these factors. Overall, the sentiment is balanced, leading to a neutral prediction for the stock price movement over the next two weeks.
Net Profit $1.7 billion, down 1% year-on-year due to market volatility affecting investor sentiment.
Return on CET1 Capital 11.3%, stable year-on-year, supported by positive operating leverage in core businesses.
Group Profit Before Tax $2.6 billion, down 1% year-on-year, reflecting stable revenues and operating expenses.
Group Revenues $12 billion, broadly flat year-on-year, with a 6% increase across core franchises.
Operating Expenses $9.2 billion, stable year-on-year, offsetting higher financial adviser and variable compensation accruals.
Earnings Per Share (EPS) $0.51, reflecting stable profitability.
Cost/Income Ratio 77.4%, indicating a focus on cost efficiency.
Global Wealth Management (GWM) Pretax Profit $1.5 billion, up 21% year-on-year due to revenue growth outpacing expenses.
Net New Assets in GWM $32 billion, representing a 3% annualized growth rate, driven by strong performance in all regions.
Net Interest Income in GWM $1.5 billion, down 4% year-on-year due to declining rates and a change in client segmentation.
Personal and Corporate Banking (P&C) Pretax Profit $597 million, down 23% year-on-year due to lower interest rates affecting net interest income.
Asset Management Pretax Profit $208 million, up 15% year-on-year, with disciplined cost management compensating for lower revenues.
Investment Bank Pretax Profit $696 million, up 72% year-on-year, driven by record revenues in global markets.
Non-Core and Legacy Pretax Loss $200 million, with revenues of $284 million, reflecting ongoing cost reductions.
CET1 Capital Ratio 14.3%, stable year-on-year, supporting capital return ambitions.
Loan Balances $615 billion, reflecting strong lending activity.
Deposits $745 billion, indicating a strong funding base.
Cost of Risk 7 basis points, with group credit loss expenses of $100 million.
Liquidity Coverage Ratio (LCR) 181%, indicating strong liquidity position.
Risk-Weighted Assets (RWA) Decreased by $15 billion sequentially, reflecting lower asset size and Basel III implementation.
Employee Count 126,000, down 2% sequentially and around 20% from 2022 baseline.
New Offerings in Alternatives: Significant demand for mandate solutions, structured products, and alternatives including new offerings within our unified global alternatives units where total assets reached nearly $300 billion.
Net New Assets in Global Wealth Management: $32 billion in net new assets in Global Wealth Management.
Net New Money in Asset Management: $7 billion net new money in asset management.
M&A and ECM Performance: Outperformed the M&A and ECM despite a challenging market backdrop.
Client Engagement: Intensified engagement with institutional and private clients during periods of market volatility.
Cost Management: Achieved an additional $900 million in gross run rate cost saves bringing the cumulative total to $8.4 billion.
Employee Count Reduction: Employee count fell sequentially by 2% to 126,000, down around 20% from the 2022 baseline.
Technology Cost Savings: Generated more than $700 million in technology cost saves from retiring legacy Credit Suisse applications.
Client Migration: Finalized preparations to migrate more than 1 million clients in Switzerland onto UBS platforms.
Integration Progress: Continued integration of Credit Suisse, with significant progress in reducing operational complexity.
Focus on Technology Investments: Investments in generative AI solutions to improve productivity and deliver tailored solutions to clients.
Market Volatility: The first quarter was characterized by significant market volatility, which dampened the positive seasonal effect typically experienced at the start of the year and tempered the bullish outlook.
Economic Uncertainty: The economic path forward is unpredictable, with a wide range of possible outcomes. Increased uncertainty is likely to affect sentiment and lead businesses and investors to delay important decisions.
Tariff Risks: The prospect of higher tariffs on global trade presents a material risk to global growth and inflation, with ongoing negotiations potentially leading to prolonged uncertainty.
Integration Challenges: The integration of Credit Suisse poses challenges, with the need to migrate over 1 million clients and integrate 95 petabytes of data, which requires careful management to avoid disruptions.
Regulatory Changes: Changes in the capital regime and regulatory approvals are critical to maintaining a CET1 capital ratio of around 14%, which is necessary for executing capital return objectives.
Credit Risk: Monitoring of credit exposures, particularly to tariff-exposed corporate clients, is essential, with potential updates to credit loss expectations as economic conditions evolve.
Operational Risks: The ongoing integration and decommissioning of legacy systems from Credit Suisse present operational risks that need to be managed effectively.
Integration of Credit Suisse: UBS is on track to complete the first main wave of client migrations from Credit Suisse by the end of Q2 2025, having already migrated a small pilot group in April.
Technology Investments: UBS is focusing on technology investments, including the development and adoption of generative AI solutions to enhance productivity and client service.
Cost Management: UBS achieved an additional $900 million in gross run rate cost savings in Q1 2025, bringing the cumulative total to $8.4 billion since the end of 2022.
Non-Core and Legacy Unit: UBS aims to reduce non-core and legacy risk-weighted assets below $8 billion by the end of 2025 and around $4 billion by the end of 2026.
CET1 Capital Ratio: UBS's CET1 capital ratio stands at 14.3%, in line with guidance, and is expected to support capital return objectives for 2025.
Net Interest Income (GWM): For full year 2025, UBS expects GWM's net interest income to decrease by a low single-digit percentage compared to 2024.
Personal and Corporate Banking (P&C) Outlook: P&C's net interest income is expected to decline around 10% for full year 2025 compared to 2024.
Non-Core and Legacy Losses: UBS expects NCL to generate an underlying pretax loss of around $1.7 billion for the remainder of the year.
Ordinary Dividend: UBS AG paid a $6.5 billion ordinary dividend to the holding company.
Share Buyback Program: UBS executed a $500 million share repurchase in Q1 2025 and plans to execute an additional $2.5 billion share buyback throughout 2025, including $500 million in Q2.
The earnings call summary presents a mix of positive and cautious elements. Strong flows in Asia and technological cost savings are positives, but concerns like adviser turnover, U.S. government shutdown impacts, and vague guidance on integration progress create uncertainty. The Q&A section did not reveal significant negative sentiment from analysts. Overall, the absence of clear guidance and the mixed nature of the updates suggest a neutral stock price movement in the short term.
The earnings call summary presents a mixed picture. The financial performance and capital position appear strong, with a positive outlook on client activity and market stabilization. However, uncertainties in regulatory proposals, lack of concrete guidance, and management's evasive responses in the Q&A section introduce concerns. The absence of a market cap makes it difficult to gauge the stock's sensitivity to these factors. Overall, the sentiment is balanced, leading to a neutral prediction for the stock price movement over the next two weeks.
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