- UBS has reported a 1Q net income of $1.76 billion, surpassing the estimated $598.3 million.
- The total revenue for the quarter is $12.74 billion, a year-on-year increase of 46%, more than the expected $11.86 billion.
- Net interest income stands at $1.94 billion, marking a 40% rise from last year, however, less than the estimated $2.23 billion.
- Net Fee & Commission income has gone up by 41% compared to the last year, reaching $6.49 billion. This number exceeds the $6.24 billion estimate.
- Operating expenses have increased by 42% reaching $10.26 billion, but still less than the expected $10.75 billion.
- The pretax profit of UBS stands at $2.38 billion, over double the predicted $1.16 billion.
- For the Wealth Management division, the pretax profit is at $1.10 billion, registering a decline of 9.1% compared to last year, and under the estimated $1.13 billion.
- The Investment Bank’s pretax profit increased by 13% to $555 million, much higher than the estimate of $397.7 million.
- The Asset Management’s division reported a pretax profit growth of 17% leading to $111 million, although less than the estimated $143.2 million.
- The Earnings Per Share (EPS) stands at 52c compared to last year’s 32c and has exceeded the estimated 18c.
- The common equity Tier 1 ratio stands at 14.8%, higher than both last year’s 14.4% and the estimated 14.4%.
- The Cost to Income Ratio of 80.5% is notably lower than last year’s 105.7%, and lower than the estimated 85.6%.
- The Return on tangible equity is up by 9%, higher than last year’s 8.1% and the estimated 3%.
- The total revenue for the Wealth Management division stood at $6.14 billion (a 28% increase) and for Investment Bank at $2.75 billion (a 16% increase), both exceeding estimates.
- The merger of UBS AG and Credit Suisse AG is expected by May 31 2024, followed by the transition to single US intermediate holding company in the following quarter. The merger of Swiss entities is planned for the third quarter.
- The bank aims for a low-to-mid single-digit decline in Net Interest Income at the Global Wealth Management unit during the next quarter.
- UBS aims to achieve a further $1.5 billion gross cost savings by the end of 2024.
- The bank expects $1.3 billion of integration-related expenses in the coming quarter.
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, a financial services provider catering to various types of clients, has garnered mixed ratings in its long-term outlook based on the Smartkarma Smart Scores. With a strong emphasis on growth and value, UBS Group has secured high scores in these areas, demonstrating positive indicators for future performance. However, the company falls short in terms of resilience, which may pose some challenges in adverse market conditions. The overall momentum and dividend scores suggest stability and moderate growth potential.
Despite facing some resilience concerns, UBS Group remains positioned for growth and value creation in the market. As a comprehensive financial services provider, UBS Group is well-equipped to navigate the complexities of the industry. Investors may find the company’s strong focus on growth and value appealing, although monitoring the company’s ability to withstand market fluctuations will be crucial. Overall, UBS Group presents a diversified portfolio of services, including investment banking, wealth management, and securities services, emphasizing its versatility and potential for long-term success.
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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