- Net Income: UBS reported a net income of $1.14 billion, significantly above the estimate of $520.8 million.
- Total Revenue: The total revenue came in at $11.90 billion, surpassing the estimated $11.49 billion.
- Net Interest Income: Net interest income was $1.54 billion, which fell short of the $2.21 billion estimate.
- Net Fee & Commission Income: This was $6.53 billion, exceeding the estimate of $6.34 billion.
- Operating Expense: The operating expenses were $10.34 billion, slightly better than the estimate of $10.41 billion.
- Pretax Profit: UBS reported a pretax profit of $1.47 billion, higher than the $986 million estimate.
- Wealth Management Pretax Profit: Wealth Management’s pretax profit was $871 million, which was below the estimate of $1.16 billion.
- Investment Bank Pretax Profit: Investment Bank reported a pretax profit of $477 million, significantly above the $284.9 million estimate.
- Asset Management Pretax Profit: Asset Management’s pretax profit was $130 million, falling short of the $143 million estimate.
- Earnings Per Share (EPS): UBS reported an EPS of 34 cents, surpassing the estimate of 16 cents.
- Common Equity Tier 1 (CET1) Ratio: The CET1 ratio stood at 14.9%, just above the estimate of 14.8%.
- Return on Tangible Equity: The return was +5.9%, well above the estimate of +2.2%.
- Wealth Management Total Revenue: Wealth Management’s total revenue was $6.05 billion, higher than the estimate of $5.94 billion.
- Investment Bank Total Revenue: Investment Bank’s total revenue came in at $2.80 billion, exceeding the estimated $2.45 billion.
- Future Outlook:
- For the second half of 2024, UBS expects Non-core and Legacy divisions to record a pre-tax loss of around $1 billion.
- The company anticipates $1.1 billion in integration-related expenses for the third quarter of 2024.
- Positive investor sentiment and continued client activity are expected to drive momentum in the third quarter.
- UBS forecasts higher market volatility in the second half of the year due to geopolitical tensions and upcoming US elections.
- The company is well-positioned to meet its financial targets and return to pre-Credit Suisse acquisition profitability levels.
- The CET1 capital ratio supports the capital return targets for 2024.
- UBS aims for up to $1 billion in share repurchases for 2024, with $467 million repurchased as of August 9.
A look at UBS Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 3 | |
| 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 has a promising long-term outlook based on Smartkarma Smart Scores. With a high Growth score of 5, the company is positioned for expansion and potential profitability. This showcases the company’s strong potential for long-term growth in the financial services sector. Additionally, UBS Group scores well in the Value category with a score of 4, indicating that the company is considered a valuable investment. While the company’s Resilience score of 2 suggests some vulnerability, its Momentum score of 3 signifies a positive trend in market performance. The Dividend score of 3 indicates a moderate but stable dividend payout for investors.
Overall, UBS Group AG, a provider of financial services to a diverse range of clients, demonstrates strength in growth potential and value according to Smartkarma Smart Scores. The company’s focus on investment, banking, wealth management, and securities services positions it well for long-term success. Investors may find UBS Group attractive for its growth prospects and value offering, along with a stable dividend payout. Despite some resilience challenges, the company’s positive momentum in the market suggests opportunities for investors seeking long-term gains in the financial services 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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